Short Run Costs (Grade 11 NSC Matric Economics): Flashcards

📚Flashcards
Short Run Costs
Sign up to keep revising.Create a free account to study more flashcards and track your progress.

Practise the cards

10 cards from this deck

Show

Short run (economics)

Time period where at least 1 factor of production can't change

Fixed costs

Expenses constant regardless of production level

Average fixed costs formula

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

Variable costs

Costs that change directly with output level

Total costs formula

TC=FC+VCTC = FC + VC

Marginal cost

Additional expense when producing one more unit

Marginal cost formula

MC=ΔTCΔQMC = \frac{\Delta TC}{\Delta Q}

Average fixed costs behavior as output increases

They fall/decrease

Law of diminishing returns

Each extra variable input eventually produces less extra output

Where does MC curve intersect AC and AVC curves?

At their minimum/lowest points

Join 100,000+ NSC Matric students studying Flashcards with us.

Select your subjects, and get access to A+ resources today.