Friday, September 6, 2019

Cost of production

Cost of production 
  • Fixed cost: A costs that does not change no matter how much is produced 
Image result for fixed cost isEx: Mortgage



















  • Variable Costs- A cost that rises or falls depending on how much is produced
Image result for variable cost isEx: Electricity bills



















Image result for Total costs is
  • Total Costs: Fixed Costs + Variable Costs














  • Marginal Revenue: Additional income from selling one more unit of a good. 
  • Marginal Costs: The cost of producing one more unit of a good.

Image result for marginal costs

  • Total Revenue: Price x Quantity 

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