Test 2: Chapter 9
its fixed costs
If a firm decides to produce no output in the short run, its costs will be
economies of scale
If long run ATC decreases as output increases, this is due to
fixed
Fixed or Variable: Advertising expenses
variable
Fixed or Variable: hourly wage payments
fixed
Fixed or Variable: insurance premiums
fixed
Fixed or Variable: interests on company issued-bonds
fixed
Fixed or Variable: real estate taxes
variable
Fixed or Variable: shipping charges
variable
Fixed or variable: payments for raw payments
Marginal product
The change in total output attributable to the employment of one more worker.
Decline; rise
for most producing firms average total costs _______________ as output is carried to a certain level, and then begins to _________.
fall
if the prices of a firm's variable inputs were to fall, marginal costs, average variable costs and average total costs would __________
Economic cost
the combination of losses of any goods that have a value attached to them by any one individual.
implicit costs
the use of savings to pay operating expenses instead of generating interest income is an example of