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Overhead total costs marginal costs variable costs Total revenue e-commerce marginal analysis marginal revenues Fixed costs Measures of Cost Cost is divided into several categories.

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Overhead total costs marginal costs variable costs Total revenue e-commerce marginal analysis marginal revenues Fixed costs Measures of Cost Cost is divided into several categories. The rst is ('I)_--the costs that a business incurs even if the plant is idle and there is zero output. The total of these unchanging costs, or (2) remains the some. On the other hand, expenses that change-such as one associated with labor and raw materials-are (3)_______________. The sum of these two costs is (4) Another category of cost is (5)_______ the extra costs incurred when a business produces one additional unit of product. Applying Cost Principles Business rms have a different mix of costs. A full-service gas station may have higher (6)__ than one that sells only gas, because it employs a variety of employees. An entrepreneur engaged in (7)_______________-electronic business or exchange conducted over the internet-is an example of a business with very low (8) Measures of Revenue Businesses use two key measures of revenue to nd the amount of output that produces the greatest prot. (9)__ is the number of units sold multiplied by the average price per unit. Even more important are (10) which are the extra revenues associated with the production and sale of one additional unit of output. Marginal Analysis Economists use (11) a type of cost-benet decision making tool that compares the extra benets to the extra costs of an action. One issue facing a business is that of breaking even, or earning enough revenue to cover (12). Businesses want to know how to generate the maximum prot. They can do so by comparing (13)_____________ and (14)

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