Production, Costs, and Revenue (AQA A-Level Economics): Flashcards

Period where at least one factor of production is fixed

Costs that don't change with output level in short run

Costs that change as output level changes

$TC = TFC + TVC$

$ATC = AFC + AVC$

All costs are variable (all factors can be changed)

Additional cost of producing one more unit of output

$AFC = \frac{TFC}{Q}$

Fixed costs spread over more units as output rises

At the minimum point of the ATC curve