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