Chapter 7 Post Quiz
Analysis of Costs

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Fixed costs	a. FC +VC
	2. TC	b. The extra cost associated with producing one additional unit of output.
	3. Variable inputs	c. Fixed cost divided by total output.
	4. Marginal cost	d. Will be achieved when the firm buys inputs until it has equalized the marginal product per dollar spent on each input.
	5. AC	e. The point at which marginal cost will cross the average cost curve.
	6. Average fixed cost	f. TC/Q.
	7. Average variable cost	g. Those inputs to production that are can be changed in the short-run.
	8. Average cost is at its minimum	h. Total revenue minus total cost.
	9. Least cost	i. Changes over time.
	10. Total profit	j. Items on the balance sheet of the firm.
	11. Assets	k. VC/Q
	12. Liabilities	l. Also known as sunk costs.
	13. Flow variable	m. The opportunity foregone when a decision is made.
	14. Opportunity cost	n. The level of something at a specific time.
	15. Stock variable