Econ 3
The total product curve:
will become flatter as output increases if there are diminishing returns to the variable input.
The _____ is the increase in output that is produced when a firm hires an additional worker.
marginal product
The total cost curve is:
positively sloped
In economics, the short run is defined as:
the period in which some inputs are considered to be fixed in quantity.
A planning period during which all of a firm's resources are variable is the _____ run.
long
The curve that shows the additional cost of each additional unit of output is called the _____ curve.
marginal cost
The sum of fixed and variable costs is _____ cost.
total
Average total cost is:
total cost divided by quantity
Average variable cost is:
total variable cost divided by output.
Average variable cost is:
total variable cost divided by quantity.
Marginal cost is the change in _____ cost resulting from a one-unit change in _____.
total; output
If marginal cost is LESS than average total cost, then _____ cost is _____.
average total; decreasing
Variable cost divided by the quantity of output produced is _____ cost.
average variable
The fixed cost curve is:
horizontal
In the short run, the costs associated with variable inputs are _____, and the costs associated with _____ inputs are _____.
variable; fixed; fixed
The term diminishing returns refers to a:
decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.
. Marginal cost is the:
increase in total cost when one more unit of output is produced.
Diminishing marginal returns occur when:
each additional unit of a variable factor adds less to total output than the previous unit.
The long run is a planning period:
over which a firm can consider all inputs as variable.
If marginal cost is GREATER than average total cost, then average total cost is:
rising.
In the short run:
some inputs are fixed and some inputs are variable.
Average variable cost is the ratio of:
variable cost to the quantity of output
Average variable cost is the ratio of:
variable cost to the quantity of output.
A fixed input is one:
whose quantity cannot be changed in the short run.