Question

Match the terms with their definitions

Marginal cost
Variable cost
Fixed cost
Profit
Total cost
1. A cost that does not vary based on production or sales . Ex . Rent
2. A cost that changes when productions increases or decreases. Ex shipping costs
3. What is given up when one more unit is produced . Ex additional utility charges due to keeping the store open later .
4. Sum of the fixed and variable costs , the cost of production. Ex . The total monthly operating expenses for a store or factory
5. The money left over after all of the expenses are paid

Answer 1

Marginal cost is a cost that changes when productions increase or decrease. for example shipping costs.
Variable cost is the sum of the fixed and variable costs, the cost of production. For example. The total monthly operating expenses for a store or factory.
Fixed cost is a cost that does not vary based on production or sales. For example rent.
Profit cost is the money left over after all of the expenses are paid.
Total cost is what is given up when one more unit is produced. Example additional utility charges due to keeping the store open later.