econnn

variable cost per unit is equal to

average variable cost

business operating decisons should be based on ___ profit

economic

total revenue minus the explicit and implicit costs of production is __ profit

economic

zero ___ profit is the revenue needed for a company to break even and meet operating costs without loss

economic

because the cost of a container is proportional to its surface area, by doubling the diameter of a container, a producer can

experience economies of scale

which of the following is a source of economies of scale for a firm

an increase in the specialization of labor

total cost divided by the amount of output produced is equal to

average total cost

___ costs are also known as accounting costs, whereas __ cost are the opportunity costs of using owned resources

explicit; implicit

economic costs can be defined as the sum of ___ and ___ costs

explicit; implicit

the firm incurs __ costs when it pays for a factor of production at the same times that it uses it, whereas __ costs are the costs associate with a firms use of resources that it owns

explicit; implicit

the average ___ cost always declines with additional output, while the average ___ and average ___ costs decline and then increase

fixed; variable;total

to determine the true cost associate with the production of goods or services, ____ costs should be taken into account

implicit

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

when the ___ cost is above the ___ cost, average cost should be increasing

marginal; average

one reason for diseconomies of scale is increasing ___ costs

opportunity

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 extra benefit of producing that unit; the extra cost associated with producing an additional unit of output; the marginal revenue; the marginal cost

being able to calculate total product, average product, and ,marginal product is important

to operate efficiently and maximize profits

Total __ costs change with output, whereas total __ costs do not

variable;fixed

marginal cost

will cause the average cost to rise only if the marginal cost is rising; can only equal the average cost when the marginal cost is rising