ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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adding fixed and variable costs
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adding marginal product changes as variable inputs are added.
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the way inputs change in response to business decisions.
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the way output changes independent of input.
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Detailed explanation-1: -Variable costs typically show diminishing marginal returns, so the marginal cost of producing higher levels of output rises. Total cost is the sum of fixed and variable costs of production.
Detailed explanation-2: -Understanding Production Costs To qualify as a production cost, an expense must be directly connected to generating revenue for the company. Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs.
Detailed explanation-3: -Total cost is the sum of fixed and variable costs. Variable costs change according to the quantity of a good or service being produced. The amount of materials and labor that is needed for to make a good increases in direct proportion to the number of goods produced. The cost “varies” according to production.
Detailed explanation-4: -In economics, production costs involve a number of costs that include both fixed and variable costs.
Detailed explanation-5: -Fixed costs = Total production costs-(Variable cost per unit * Number of units produced) $4, 000 total production costs-($3 * 1, 000 tacos) = $1, 000 fixed cost. Average fixed cost = Total fixed cost / Total number of units produced. More items