Chapter 9 Part 1 Cost in the short run

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Q needs to be indicated in variable cost because the values are changing. True or False

True

Rental rate can be explit or implicit. True or False

True

Average Variable Cost (AVC)

VC/Q

___ is a function of quality

Variable Cost

Variable cost(VC): ___*____

Wage * Labor

if its marginal anything you___

take the derivative

MC=

/_\TC / /_\Q or Change in VC/Q

Based on Graph: ATC 1) ATC gets thinner because of ____ 2) if ATC=MC then , Then ___ will increase starting ____

1) AVC 2) ATC 3) Diminishing returns

Based on Graph:AFC 1) As the firm produces more units the ____ more 2) Cost will continue to bring the ATC of production____ as more units are made.

1) Cost will decrease more 2)Down

Based on Graph: MC Curve 1) When MC is going down _____Returns to Labor 2) When it hurts the short term limit (Curves) It will start ____

1) Increases 2) Diminishing Returns

Based on Graph: AVC 1) AVC is the Running Average of ___ Curve 2) when ___ goes down AVC goes Down 3. When __ goes up AVC goes up

1) MC 2) MC 3) MC

____will be going down as long as Q is going up

Average Fixed Cost (AVC)

___ has a rental rate

Capital

TC and VC have the same slope because of the the difference between the two lines is the ____

FC

Total Cost(TC): ____ + ____

FC + VC

Average Fixed Cost: AFC:

FC/Q1

Total Rental Cost represents ____

Fixed Costs

Cost in the short Run: Capital is ___ and Labor is ____

Fixed, Variable

FC is Depended or Independent?

Independent

____ As a standard price is called wage

Labor

in the short run when allcoating production you will make ___=____ and choose the smaller one.

MC =MC

Cost of producing 1 more individual unit, Answers how many units to produce

Marginal Cost

Fixed Cost(FC):____ *____

R * K

Renting capital or the opportunity cost owning capital is known as

Rental rate

Average Total Cost(ATC) : 1) or 2)

TC/Q or (AFC + AVC /Q)

____ Cost of producing various levels of output is the cost of all the factors of production used

Total Cost

____ is all costs of production

Total Cost


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