Short-run and Long-run: Theory of Costs 2

Which of the following are fixed costs?

• Rent

• Cost of labour

• Material costs

• Loan payments

Fixed costs are also referred to as

• Average fixed costs

• Total Costs

• Sales Costs

• Total Fixed Costs

Select all the options that comprises short-run costs:

• Variable Costs

• Fixed Costs

• Expense Costs

• Sunk costs

Fixed costs + variable costs =

• Average costs

• Fixed Costs

• Total Cost

• Marginal Cost

When production increases fixed costs does what?

• Increases

• Decreases

• Remains the same

• Diminishes

In the long-run all costs are:

• Variable Costs

• Fixed Costs

• Total Cost

• Marginal Cost

When production is zero what would be the fixed cost?

• Not enough information

• More than zero

• Zero

• Same as if production was NOT zero

When production increases variable costs does what?

• Increases

• Decreases

• Remains the same

• Diminishes

When production increases average fixed costs does what?

• Increases

• Decreases

• Remains the same

• Decreases then increases

When production increases average total cost tends to do what?

• Increases

• Decreases

• Remains the same

• Decreases then increases