Costs Flashcards
1
Q
What is the short run?
A
Where at least one factor of production is fixed
2
Q
What is the long run?
A
Where all factors of production are variable
3
Q
Define variable costs
A
Costs which vary with output
(fluctuates depending on quantity sold)
4
Q
Define fixed costs
A
Costs that stay the same, they do NOT vary with output
5
Q
Formula for total cost
A
Total variable costs + total fixed cost
6
Q
A
