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.