Chapter 9 Part 1 Cost in the short run
Q needs to be indicated in variable cost because the values are changing. True or False
True
Rental rate can be explit or implicit. True or False
True
Average Variable Cost (AVC)
VC/Q
___ is a function of quality
Variable Cost
Variable cost(VC): ___*____
Wage * Labor
if its marginal anything you___
take the derivative
MC=
/_\TC / /_\Q or Change in VC/Q
Based on Graph: ATC 1) ATC gets thinner because of ____ 2) if ATC=MC then , Then ___ will increase starting ____
1) AVC 2) ATC 3) Diminishing returns
Based on Graph:AFC 1) As the firm produces more units the ____ more 2) Cost will continue to bring the ATC of production____ as more units are made.
1) Cost will decrease more 2)Down
Based on Graph: MC Curve 1) When MC is going down _____Returns to Labor 2) When it hurts the short term limit (Curves) It will start ____
1) Increases 2) Diminishing Returns
Based on Graph: AVC 1) AVC is the Running Average of ___ Curve 2) when ___ goes down AVC goes Down 3. When __ goes up AVC goes up
1) MC 2) MC 3) MC
____will be going down as long as Q is going up
Average Fixed Cost (AVC)
___ has a rental rate
Capital
TC and VC have the same slope because of the the difference between the two lines is the ____
FC
Total Cost(TC): ____ + ____
FC + VC
Average Fixed Cost: AFC:
FC/Q1
Total Rental Cost represents ____
Fixed Costs
Cost in the short Run: Capital is ___ and Labor is ____
Fixed, Variable
FC is Depended or Independent?
Independent
____ As a standard price is called wage
Labor
in the short run when allcoating production you will make ___=____ and choose the smaller one.
MC =MC
Cost of producing 1 more individual unit, Answers how many units to produce
Marginal Cost
Fixed Cost(FC):____ *____
R * K
Renting capital or the opportunity cost owning capital is known as
Rental rate
Average Total Cost(ATC) : 1) or 2)
TC/Q or (AFC + AVC /Q)
____ Cost of producing various levels of output is the cost of all the factors of production used
Total Cost
____ is all costs of production
Total Cost
