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While riding on a train,David notices that the trees and telephone poles close to the tracks seem to flash by,while the buildings,trees,and mountains that are farther away seem to move by more slowly.This phenomenon is called
Marginal Costs
Marginal costs refer to the additional cost incurred by producing one more unit of a product or service.
Avoidable Costs
Costs that you get back if you shut down operations.
Variable Costs
Costs that vary directly with the level of production or sales volume, such as raw materials or labor expenses.
Fixed Costs
Business expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance.
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