# Production, costs and revenue 1

## Quiz by Craig Fortuin

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30 questions

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- Q1total product is the maximum output that the firm can produce with the given number of fixed and variable inputs at its disposaltotal product/output (TP)30s
- Q2marginal product is the additional unit of output which is produced as one more unit of the variable input (labour) is combined with the fixed inputmarginal product/output (definition)30s
- Q3MP = ∆total product (TP) ÷ ∆number of workers (N)marginal product/output (formula)30s
- Q4average product of a variable input shows the contribution that each labourer makes towards productionaverage product/output (definition)30s
- Q5AP = total product (TP) ÷ number of workers (N)average product (formula)30s
- Q6costs that remain the same even if the output changes, e.g. rent, depreciation, insurancefixed costs (indirect costs/overhead costs)30s
- Q7costs that change according to changes in output, e.g. wages, cost of raw materials, electricityvariable costs (direct costs/prime costs)30s
- Q8the cost/remuneration for all the factors of production used in the production processtotal cost (definition)30s
- Q9Total Cost = Total Fixed Cost + Total Variable Costtotal cost (formula)30s
- Q10marginal cost is the amount by which total cost increases when one extra unit of a product is producedmarginal cost (definition)30s
- Q11MC = ∆total cost (TC) ÷ ∆Quantity produced (Q)marginal cost (formula)30s
- Q12average cost (or average total cost) is the cost per unit of productionaverage cost (AC) (definition)30s
- Q13average cost of production, calculated as Total Cost/Quantityunit cost30s
- Q14average cost = total cost (TC) ÷ Quantity produced (Q)average cost (AC) (formula)30s
- Q15average fixed cost is the total fixed cost (TFC) divided by the total product (total quantity produced)average fixed cost (AFC) (definition)30s