Enterprise costs
Answers are for parents and teachers.
1
Sort into “fixed” or “variable”: rent, flour, a utility payment (flat tariff), a craftsman’s piece-rate pay, security.
Fixed: rent, flat-tariff utility payment, security. Variable: flour, the craftsman’s piece-rate pay.
2
Table (thousand so‘m): FC = 60; at Q = 5, VC = 90. Find TC and AC (write AC in thousand so‘m).
30
3
At 10 units TC = 130 000 so‘m, at 11 units TC = 138 000 so‘m. What is the marginal cost in so‘m?
8000
4
Let your imaginary workshop have 3 external costs and 1 internal cost; write them and say in 1 sentence why the internal cost should also be counted.
Example: external — rent, raw materials, utilities; internal — the owner’s own time. An internal cost expresses the income that could have been earned elsewhere.
5
Why are net distribution costs not added to the product value but covered out of profit? Write your view.
Because they do not create the product but serve its sale (wages, advertising); so they are covered from the profit made on sale.