13 terms

Economics - fixed cost etc.

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fixed cost
economic costs for inputs that remain fixed at all quantities of output
variable costs
economic costs for inputs that vary at each quantity of output
Total Cost
the sum of all fixed and variable costs at each quantity of output
Marginal Cost
the extra cost of producing an additional unit of output
Average fixed cost
the fixed cost per unit of output
average variable cost
the variable cost per unit of output
average cost
the sum of average fixed cost and average variable cost at each quantity of output
Total Cost= TC
fixed cost FC + variable cost VC
Marginal Cost
change in total cost (TC) / change in total production (q)
Average fixed cost
fixed cost/total products
Average Variable Cost
variable costs/ total product (q)
Long - Run Average Cost
the minimum short - run average cost at each possible level of output
economies of scope
the cost advantage related to a single business producing different products
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