quiz 5
Costs of production that change with the rate of output are:
Variable costs.
The main difference to an economist between "short-run" and "long-run" is that:
In the long-run all resources are variable where as in the short-run at least one resource is fixed.
The most desirable rate of output is the one that:
Maximizes total profit.
Marginal cost is equal to:
The change in total cost divided by the change in output.
The maximum output that can be produced from a set of inputs is measured by:
The production function.
Costs of production that do not change with the rate of output are:
Fixed costs.
In the short run, a manufacturer should produce the next unit of output as long as:
Price is greater than marginal cost.
The selection of the short-run rate of output is the:
Production decision.