Production, Costs, and Revenue (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What defines the short run in economics?
What defines the short run in economics?
At least one factor of production is fixed
Which of the following is an example of a fixed cost?
Which of the following is an example of a fixed cost?
Rent on buildings
Which cost changes directly with the level of output produced?
Which cost changes directly with the level of output produced?
Variable costs
What happens to all costs in the long run?
What happens to all costs in the long run?
All costs become variable
What does marginal cost represent?
What does marginal cost represent?
Additional cost of producing one more unit
What happens to average fixed cost (AFC) as output increases?
What happens to average fixed cost (AFC) as output increases?
It falls continuously
Where does MC intersect the ATC curve?
Where does MC intersect the ATC curve?
At the minimum point of ATC
If and at 3 units, what is total cost?
If and at 3 units, what is total cost?
£45
What are wages and salaries classified as?
What are wages and salaries classified as?
The reward for hiring labour
When should a firm use labour-intensive production?
When should a firm use labour-intensive production?
When wages are low and capital is expensive