Firms' Costs, Revenue & Objectives Flashcards
(10 cards)
1
Q
Costs of production
A
Firms expenditure in process of producing products
2
Q
Fixed costs
A
Costs that don’t depend on output level
3
Q
Variable costs
A
Costs that depend on output level
4
Q
Total costs
A
Fixed + variable cost
5
Q
Average fixed costs
A
Fixed costs / output level
6
Q
Average total costs
A
Total costs / output level
7
Q
Revenue
A
Amount payable to firms for sales of product
8
Q
Total revenue
A
Price x q sold
9
Q
Average revenue
A
Total revenue / q sold
10
Q
Profit
A
Total revenue - total costs
