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Which Best Describes Economic Costs

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Key Terms

  • fixed cost: Business expenses that are not dependent on the level of goods or services produced by the business.
  • variable cost: A cost that changes with the change in volume of activity of an organization.
  • marginal cost: The increase in cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output. Additional cost associated with producing one more unit of output.
  • average cost: In economics, average cost or unit cost is equal to total cost divided by the number of goods produced.
  • return to scale: A term referring to changes in output resulting from a proportional change in all inputs (where all inputs increase by a constant factor).
  • economic cost: The accounting cost plus opportunity cost.
  • cost: A negative consequence or loss that occurs or is required to occur.
  • Opportunity cost: The cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen).

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  • variable cost. Provided by: Wiktionary. Located at: en.wiktionary.org/wiki/variable_cost. License: CC BY-SA: Attribution-ShareAlike
  • Total cost. Provided by: Wikipedia. Located at: en.Wikipedia.org/wiki/Total_cost. License: CC BY-SA: Attribution-ShareAlike
  • Variable cost. Provided by: Wikipedia. Located at: en.Wikipedia.org/wiki/Variable_cost. License: CC BY-SA: Attribution-ShareAlike
  • Economic cost. Provided by: Wikipedia. Located at: en.Wikipedia.org/wiki/Economic_cost. License: CC BY-SA: Attribution-ShareAlike
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  • fixed cost. Provided by: Wikipedia. Located at: en.Wikipedia.org/wiki/fixed%20cost. License: CC BY-SA: Attribution-ShareAlike
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  • variable cost. Provided by: Wiktionary. Located at: en.wiktionary.org/wiki/variable_cost. License: CC BY-SA: Attribution-ShareAlike
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  • Costcurve – Combined. Provided by: Wikimedia. Located at: commons.wikimedia.org/wiki/Fi…-_Combined.svg. License: CC BY-SA: Attribution-ShareAlike
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  • MBAecon – economies of scale, diseconomies of scale, constant returns to scale. Provided by: Wikispaces. Located at: mbaecon.wikispaces.com/econom…turns+to+scale. License: CC BY-SA: Attribution-ShareAlike
  • Marginal cost. Provided by: Wikipedia. Located at: en.Wikipedia.org/wiki/Marginal_cost. License: CC BY-SA: Attribution-ShareAlike
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  • Boundless. Provided by: Boundless Learning. Located at: www.boundless.com//economics/…/economic-cost. License: CC BY-SA: Attribution-ShareAlike
  • cost. Provided by: Wiktionary. Located at: en.wiktionary.org/wiki/cost. License: CC BY-SA: Attribution-ShareAlike
  • Opportunity cost. Provided by: Wiktionary. Located at: en.wiktionary.org/wiki/Opportunity+cost. License: CC BY-SA: Attribution-ShareAlike
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  • Costcurve – Combined. Provided by: Wikimedia. Located at: commons.wikimedia.org/wiki/Fi…-_Combined.svg. License: CC BY-SA: Attribution-ShareAlike
  • Relationship between Long-run Cost Curve and Short-run Cost Curve. Provided by: Wikimedia. Located at: commons.wikimedia.org/wiki/Fi…Cost_Curve.svg. License: CC BY-SA: Attribution-ShareAlike
  • MBAecon – economies of scale, diseconomies of scale, constant returns to scale. Provided by: Wikispaces. Located at: mbaecon.wikispaces.com/econom…turns+to+scale. License: CC BY-SA: Attribution-ShareAlike
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