Grade Booster student workshops are back in cinemas for 2022. Learn more

Economics

Study Presentations

Business Costs in the Short-Run

Level:
AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

This is a revision presentation on business costs in the short run

Key Terms

Average fixed cost: Fixed cost per unit AFC= TC/Q

Average total cost: AC = cost per unit = TC/Q

Average variable cost: Variable cost per unit; AVC = TVC/Q

Diminishing marginal productivity: Falling MP as more units of a variable factor are added to a fixed factor

Long run production: Time period where all factor inputs are variable

Marginal cost: MC is change in total cost from supplying one extra unit

Short run production: Time period when at least one factor input is fixed

Sunk cost: A cost that cannot be recovered in a business closes down or leaves an industry

Total cost: TC = total fixed cost + total variable cost

Total fixed cost: Costs that do not depend on the level of output in the short run

Total variable cost: Variable costs are costs that vary directly with the level of output

Boston House,
214 High Street,
Boston Spa,
West Yorkshire,
LS23 6AD

Tel: +44 0844 800 0085

© 2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.