Basic Cost Concepts: Total, Average, Marginal, Fixed And Variable Cost - SS2 Economics Past Questions and Answers - page 1
1
What is total cost?
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A
The additional cost incurred by producing one more unit of output
B
The cost that does not change with the level of production
C
The sum of all the costs incurred in the production process
D
The total cost divided by the quantity of output produced
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2
What is the average cost?
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A
The additional cost incurred by producing one more unit of output
B
The cost that does not change with the level of production
C
The sum of all the costs incurred in the production process
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D
The total cost divided by the quantity of output produced
3
What is marginal cost?
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A
The additional cost incurred by producing one more unit of output
B
The cost that does not change with the level of production
C
The sum of all the costs incurred in the production process
D
The total cost divided by the quantity of output produced
4
What is fixed cost?
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A
The additional cost incurred by producing one more unit of output
B
The cost that does not change with the level of production
C
The sum of all the costs incurred in the production process
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D
The total cost divided by the quantity of output produced
5
What is a variable cost?
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A
The additional cost incurred by producing one more unit of output
B
The cost that does not change with the level of production
C
The sum of all the costs incurred in the production process
D
The total cost divided by the quantity of output produced
Â
6
How do you calculate the marginal cost?
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7
Give an example of a fixed cost and a variable cost.
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