Production ALA

Total cost equals total (blanks) cost plus total (blanks) cost.

fixed, variable

Decreasing marginal returns are a characteristic of production whereby the marginal product of the next unit of a variable resource utilized is (blank) than that of the previous variable resource.

less, smaller, lower, or lesser

Being able to calculate total product average product and marginal product is important:

to operate efficiently and maximize profits.

Being able to calculate (blank) product average product and marginal product is important to operate efficiently and maximize profits.

total

Costs that change with the amount of output produced are (blank) costs.

variable

Suppose a snowboard manufacturer increases its output by 1 snowboard per day. As a result, the total cost of producing snowboards each day rises from $100 to $110. The marginal cost of producing an extra snowboard is $(blank) (Only enter number; the $ sign has been provide for you.)

$10

(Average fixed cost + average variable cost) =

Average total cost

The variable cost curve, at each output level, falls:

below the total cost curve by the amount of the fixed cost curve.

The average fixed cost curve:

decreases for all levels of output.

The amount of output produced per unit of a resource employed is the (blank) product.

average

Average total cost equals:

average fixed cost plus average variable cost.

Total cost divided by the amount of output produced is equal to:

average total cost.

Total variable cost divided by the amount of output produced is equal to:

average variable cost