Econ chapter 8 (I think, but it's unit 6 so who knows at this point)
A _____ input is an input for which the level cannot change to increase or decrease output.
Fixed
Average product is calculated _____.
AP = Q / L
Select all that apply: Average total cost can be calculated as _____.
ATC = TC / Q; ATC =AVC + ATC
Average variable cost is calculated _____.
AVC = TVC / Q
The short-run marginal cost is the _____.
Additional cost when one more unit of output is produced.
The marginal cost curve crosses both the average variable cost curve and the average total cost curve _____.
At their minimums
Average product is _____.
Average output per unit of input
A _____ cost in production is a cost associated with an input that the firm can avoid or recover should the firm choose not to use it.
Avoidable
Payments for inputs that the company must pay for even when no output is produced are called _____.
Fixed costs
Holding all other things constant, when the fixed inputs of production increase, _____
Both average product and marginal product will increase
Select all that apply: A production function _____.
Can be expressed as Q = f(L, K); Shows the maximum output possible; Holds fixed technology
Average fixed cost _____.
Decreases as quantity increases
_____ efficiency is achieved when a firm produces a certain level of output at the least cost.
Economic
If marginal product is lower than average product, average product is _____.
Falling
When graphed, total cost is _____.
Higher than TVC by the amount of TFC
Marginal cost (MC) will begin to _____.
Increase at the same quantity of output at which MP begins to fall
Marginal product is calculated as _____.
MP = DQ / DL
The law of diminishing marginal product is illustrated by the:
Negative slope of the marginal product curve
The firm's _____ is the set of all possible short-run situations that the firm can face in the future.
Planning horizon
A(n) _____ is a table or equation showing the maximum output that can be producted from any specified set of inputs, given existing technology.
Production function
The _____ is the period of time in which producers can change only variable inputs.
Short run
A _____ cost in production is a cost associated with an input for whose payment cannot be recovered even if the firm chooses not to use the input anymore.
Sunk
_____ efficiency is achieved when a firm produces the maximum output given the inputs.
Technical
Marginal product is _____.
The additional product added when one more unit of labor is hired.
Short run marginal cost is _____.
The change in cost with a one-unit change in quantity of output
Production is:
The creation of goods and services from resources
_____ is the principle that the number of variable inputs increases, other inputs held constant, a point will be reached beyond which the marginal product decreases.
The law of diminishing marginal product
Select all that apply: Short run marginal cost is dependent on _____.
The marginal product of the variable input; The wage
The AVC curve and the ATC curve are separated by _____.
The value of AFC
Select all that apply: Average variable cost is dependent on _____.
The wage; The average product of the variable input
_____ product is the output that is produced given a production function and various levels of the inputs capital and labor.
Total
_____ costs are costs that must be paid regardless of the level of output.
Total fixed
T/F: Diminishing marginal product is the reason marginal costs begin to rise after some point.
True
When a given level of output can be produced with more than one combination of inputs it is called _____ proportions production.
Variable
Total output is _____ when labor input is set at 0.
Zero
