Production

variable costs per unit of output produced is:

Average variable cost AVC = TVC/Q

Marginal product is the

The additional output produced as a result of utilizing one more unit of a variable resource

Zero __________ profit means that the value of economic profit is negative

accounting

Total revenue minus the explicit and implicit cost of production is _________ profit

economic

costs that do not change with the amount of output produced are __________ cost

fixed

The marginal cost curve must intersect both the average variable cost and average total cost curves at their respective ____________ points

minimum

the ______________ cost of using owned resources are implicit costs.

opportunity

Explicit costs are also known as ___________ costs. (seen/unseen)

seen

A period of time in which at least one input of production is fixed is known as the ______________

short run

when there are diminishing marginal returns,

the marginal product of the next unit of variable resources utilized is less than that of the previous variable resource

The price of a good times the quantity sold equals

total revenue

The vertical distance between the average _____ cost and average ___________ cost curves should get smaller as more output is produced.

total, variable

costs that change with the amount of output are ____________ costs

variable