a) Define the following cost concepts as used in production:
i) Fixed Cost
ii) Variable Cost
iii) Marginal Cost (6 marks)
b) Explain THREE differences between short-run costs and long-run costs of a firm. (6 marks)
c) State and explain the relationship between Marginal Cost (MC) and Average Total Cost (ATC) in the short run. (4 marks)

Question

a) Define the following cost concepts as used in production:
   i) Fixed Cost
   ii) Variable Cost
   iii) Marginal Cost (6 marks)
b) Explain THREE differences between short-run costs and long-run costs of a firm. (6 marks)
c) State and explain the relationship between Marginal Cost (MC) and Average Total Cost (ATC) in the short run. (4 marks)

Accepted Answer

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Answer

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Answer

B) null

Answer

C) null

Answer

D) null

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