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Average variable costs avc - PowerPoint PPT Presentation

Cost Concepts in Economics

Cost Concepts in Economics. Chapter 9. Cost Classification. Fixed or variable Cash or non-cash Accounting expense or not Opportunity costs. Opportunity Costs. Not an accounting expense Every input has an alternative use

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Costs Fixed, Variable and Total Costs

Costs Fixed, Variable and Total Costs. A: FIXED COSTS (FC) - Costs that do not vary with the level of output - They are present even when the output is zero - Include any debt repayments, insurance, leases and mortgages. B: VARIABLE COSTS (VC)

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Cost Concepts in Economics

Costs Fixed, Variable and Total Costs