Define/identify each of the following:

• break-even point:

• fixed costs:

• marginal analysis:

• marginal cost:

• marginal revenue:

• profit-maximizing quantity of output:

• total costs:

• total revenue:

• variable costs:

Identify examples of both fixed and variable costs.

Fixed Costs

Variable Costs

What is the difference between break-even output and profit-maximizing quantity of output?

If the total output of a business increases, what will happen to

• fixed costs?

• variable costs?