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7 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Definition of cost of production |
this are the expenses incurred in the production of goods and services |
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What’s short run |
it’s the time period in the business when all factors of production cannot be changed |
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Type of costs in short run |
1) variable cost 2) fixed costs |
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What’s VC |
a type of cost which changes with the change in output |
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What’s AVC |
the variable cost per unit |
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What’s the formula of AVC |
Total cost: output |
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What’s FC |
these are the cost that don’t change with the change in output |
FC remain the same when output increases or decreases |
