Question

Hat you give up for taking some action is called theopportunity cost . Variable cost is falling when marginal cost is below it and rising when marginal cost is above it. A cost that does not depend on the quantity produced is . In the ice-cream industry in the short run, includes the cost of cream and sugar but not the cost of the factory. Profits equal total revenue minus . The cost of producing an extra unit of output is the

Answer 1

Answer:

Diminishing marginal product explains why, as a firm's output increases,

a. the production function and total cost curve both get steeper.

b. the production function and total cost curve both get flatter.

c. the production function gets steeper, while the total cost curve gets flatter.

d. the production function gets flatter, while the total cost curve gets steeper.

d. the production function gets flatter, while the total cost curve gets steeper.

Answer 2

Answer:

Variable costs are dependent on production output. ... Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output.