Examlex
Please define the following key terms.
- Xia Qinggao
Total Cost Function
The total cost function is a mathematical representation that shows how total costs of production vary with changes in output level.
Fixed Cost
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
Marginal Costs
The increase in cost due to the production of one further unit of a product or service.
Total Cost Function
An equation that shows the overall cost incurred by a firm in the production process, including both fixed and variable costs, as a function of the quantity of output produced.