Discuss costs and define the following terms:

Fixed cost- give an example

Variable cost-give an example

Total cost

Average cost

Average variable cost

Average fixed cost

Marginal cost

What do the curves that depict the following look like:

Average cost

Average variable cost

Average fixed cost

Marginal cost

Discuss the difference between accounting costs (explicit costs) and economic costs (implicit cost). Give examples.

A firm enjoying perfect competition is producing 10 umits. At that point average cost is greater than marginal cost. Should the firm increase or decrease production? Clarifywhy.