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Match the Term with Its Definition

question 107

Essay

Match the term with its definition.Some terms may not be used.
a.Economic risk
b.Experience curve efficiencies
c.Foreign licensing
d.International franchising
e.International outsourcing
f.International strategic alliance
g.Learning effects
h.Licensee
i.Licensor
-Per-unit savings gained from repeated production of the same product


Definitions:

Total Cost

The complete cost of production that includes both fixed and variable costs.

Opportunity Cost

The best alternative that we forgo, or give up, when we make a choice or a decision.

ΔTVC/Δq

ΔTVC/Δq represents the change in Total Variable Cost (TVC) resulting from producing one additional unit of output, equivalent to Marginal Cost.

AVC

AVC, or Average Variable Cost, is the total variable costs divided by the quantity of output produced.

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