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WorksheetsCOST AND REVENUE
Total questions: 20
Worksheet time: 20mins
Fixed Cost + Variable Cost =
Breakeven point
Total costs
Fixed costs
Variable costs
Costs that change based on the amount of goods and services produced.
Total costs
Fixed costs
Variable costs
Costs
Rent, administrative costs, advertising, employee salary are examples of ...
Variable costs
Fixed costs
Costs
Prices
Marginal cost is
Total cost
minimum cost
Change in TC
Average cost is
Total cost
Cost per unit
always zero
Average revenue is equal to
Price
Total revenue
Total cost
The shape of Average cost is
upward sloping
downward sloping
U shaped
Marginal cost curve cuts Average cost curve at its
highest point
minimum point
Never cuts
Cost which do not change with the level of output is
marginal cost
variable cost
fixed cost
This is the term given to how many products/services a business produces.
Output
Cost
Fixed Cost
Variable cost
Revenue is...
Sales revenue – total costs
Selling price x number of units sold
Fixed costs + variable costs
cost that is independent of output
What is Revenue
Income from selling products or services
The money being paid out for bills
The money kept by an entrepreneur after costs are paid
The selling price of each of the items
Calculate the revenue if a business sells 20,000 units at £2 each
£4000
£40,000
$40,000
£400,000
Revenue is calculated using which of the following formulas?
Units Sold x Price Per Unit
Equal To Total Profit
Fixed Costs X Units Sold
Number Of Units Produced X Price Per Unit
What defines average variable cost?
total cost divided by the quantity of the variable factor employed
total variable cost divided by the quantity of the variable factor employed
total variable cost divided by the output produced
the addition to total variable cost by producing one more unit of output
Which of the following statement is true about the relationship between MC and AVC?
if MC < ATC, then ATC is minimised.
If MC = ATC, then ATC is at maximum.
If MC > ATC, then MC is decreasing.
If MC < ATC, then ATC is decreasing.
