econ 8a
explicit costs are also known as ______________ costs
accounting
total revenue minus the total explicit costs of production
accounting profit
the amount of output produced per unit of a resource employed is the ____________ product.
average
if a business owner can product more as a whole with an additional worker even if the marginal product associated with that worker is lower than the marginal product associated with the previous worker, then there are:
diminishing marginal returns
total revenue minus the explicit and implicit costs of production is __________ profit
economic
zero accounting profit means that the value of _______________ profit is negative
economic
the costs associated with the use of resources
economic costs
the sum of explicit and implicit costs
economic costs
monetary payments made by individuals, firms, and governments for the use of other's land, labor, capital, and entrepreneurial ability are ____________________ costs.
explicit
____________ is an important factor in determining the true cost of an economic activity such as the production of goods and services
implicit cost
______________ marginal returns is a characteristic of production whereby the marginal product of the next unit of a variable resource utilized is greater than that of the previous variable resource
increasing
the additional output produced as a result of utilizing one more unit of a variable resource is the ___________________ product.
marginal
____________ economic profits encourage firms to exit the market
negative
________________ cost is the cost of the next best alternative that is forgone
opportunity
the _______ costs of using owned resources are implicit costs
opportunity
accounting profit consists of...
revenue - explicit costs
economic profit consists of...
revenue - implicit and explicit costs
any time you give up the opportunity to use the resource for something else.
there is an opportunity cost
being able to calculate __________ product, average product, and marginal product is important to operate efficiently and maximize profits
total
total amount of output produced with a given amount of resources
total product
the price of a good times the quantity sold equals...
total revenue
the short run is a period of time in which:
at least one input of production is fixed.