Production
Total variable costs divided by the amount of output produced is equal to:
Average variable cost
Variable cost per unit of output produced is:
Average variable cost
If a business owner can produce more as a whole with an additional worker even if the marginal product associated with that worker is lower than the marginal product associated with the previous worker, then there are:
Diminishing marginal returns
Total cost divided by the amount of output produced is equal to:
Overage total cost
in making a decision about how much output it should produce to maximize its profits, which two pieces of information does a firm need?
The marginal cost the marginal revenue
total cost equals:
Total fixed costs plus total variable cost
Total revenue minus the explicit cost of production is _____________ profit.
accounting
zero _______________ profit means that the value of economic profit is negative.
accounting
marginal product is the:
additional output produced as a result of utilizing one more unit of a variable resource.
When the marginal cost falls below the average cost, the _____________ cost should be decreasing.
average
total product divided by the number of units of a resource employed gives the _______________ product of the resource.
average
The fixed cost per unit is equal to:
average fixed cost
Total cost divided by the amount of output produced is equal to:
average total cost
When the marginal product increases, the marginal _________________ declines.
cost
positive ________________ profits encourage more firms to enter the market to produce goods and services.
economic
total revenue minus the explicit and implicit costs of production is _______________ profit.
economic
Monetary payments made by individuals, firms and governments for the use of others' land, labor, capitol, and entrepreneurial ability are ___________ costs.
explicit
The shape of the long-run average total cost curve can differ for different types of firms, depending on:
how much production it takes to reach the minimum long-run average cost.
The opportunity costs of using own resources are ________________ costs.
implicit
Economic costs can be defined as the sum of __________ and _________ costs.
implicit, explicit
____________________ marginal returns is a characteristic of production whereby the marginal product of the next unit of a variable resource utilized is greater than that of the previous variable resource.
increasing
minimum-efficiency scale refers to the:
lowest level of output at which the long-run average total cost is minimized.
the extra or additional cost associated with the production of an additional unit of output is the _____________ cost.
marginal
The additional output produced as a result of utilizing one more unit of a variable resource is called:
marginal product
The _________________ costs of using owned resources are implicit costs.
opportunity
Costs that do not change with the amount _________ produced are fixed costs.
output
The total amount of output produced with a given amount of resources is known as the total _________________.
product
Total ________ equals price times quantity.
revenue
A period in time in which at least one input of production is fixed is known as the __________________ run.
short
costs that increase as production increases and decreases as production decreases are _______________ costs.
variable
Economies of scale can result from a variety of factors, including:
-lower costs of inputs as firms purchase larger quantities.- productivity gains from more specialized labor.