Marginal Cost
What do we call the additional cost of producing one more unit of a product?
What is marginal cost?
What do we call costs that do not change no matter how much is produced?
What is fixed cost?
What type of cost increases as production increases?
What is variable cost?
What do we call the money a company makes after paying all costs?
What is profit?
What do we call the actual money a company spends on expenses?
What is explicit cost?
If marginal cost increases, what decision will a company usually make?
What is reduce production?
Give an example of a fixed cost.
What is rent?
Give an example of a variable cost.
What is labor cost?
What is the formula for profit?
What is revenue minus cost?
Give an example of an explicit cost.
What is salary?
If marginal cost decreases and a company produces more, what will happen?
What is lower average cost?
What cost must a company pay even if it produces nothing?
What is fixed cost?
If variable costs become too high, should a company produce more or less?
What is reduce production?
What must a company consider to maximize profit?
What is perfect competition?
If explicit costs decrease, what happens to total costs?
What is decrease?
If marginal cost is lower than average total cost, how will average total cost change?
What is decreasing?
What is a characteristic of industries with high fixed costs?
What is large initial investment?
Give an example of an industry with high variable costs.
What is restaurant business?
In what type of market is it hard for businesses to make long-term profits?
What is perfect competition?
What is the difference between explicit and implicit costs?
What is payment?
If marginal cost becomes higher than average total cost, what should a company do?
What is stop increasing production?
How can a company reduce its fixed costs?
What is outsourcing?
If labor costs suddenly increase, how can a company reduce its variable costs?
What is automation?
What strategies help a company maintain long-term profits?
What is differentiation?
Can a company have no explicit costs? If so, give an example.
What is self-employment?