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Hao and Chang are totally immersed in their video game. Their mum has been calling them to dinner for five minutes, but they have not responded. How would you describe their mental state?
Fixed Cost
Costs that do not vary with the level of output or production, such as rent or salaries.
Variable Cost
Costs that vary directly with the level of output or production volume, such as materials and labor expenses.
Average Variable Cost
The total variable costs incurred by a firm divided by the quantity of output produced.
Marginal Cost
The extra cost resulting from the manufacture of an additional unit of a product or service.
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