Econ 3

The total product curve:

will become flatter as output increases if there are diminishing returns to the variable input.

The _____ is the increase in output that is produced when a firm hires an additional worker.

marginal product

The total cost curve is:

positively sloped

In economics, the short run is defined as:

the period in which some inputs are considered to be fixed in quantity.

A planning period during which all of a firm's resources are variable is the _____ run.

long

The curve that shows the additional cost of each additional unit of output is called the _____ curve.

marginal cost

The sum of fixed and variable costs is _____ cost.

total

Average total cost is:

total cost divided by quantity

Average variable cost is:

total variable cost divided by output.

Average variable cost is:

total variable cost divided by quantity.

Marginal cost is the change in _____ cost resulting from a one-unit change in _____.

total; output

If marginal cost is LESS than average total cost, then _____ cost is _____.

average total; decreasing

Variable cost divided by the quantity of output produced is _____ cost.

average variable

The fixed cost curve is:

horizontal

In the short run, the costs associated with variable inputs are _____, and the costs associated with _____ inputs are _____.

variable; fixed; fixed

The term diminishing returns refers to a:

decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.

. Marginal cost is the:

increase in total cost when one more unit of output is produced.

Diminishing marginal returns occur when:

each additional unit of a variable factor adds less to total output than the previous unit.

The long run is a planning period:

over which a firm can consider all inputs as variable.

If marginal cost is GREATER than average total cost, then average total cost is:

rising.

In the short run:

some inputs are fixed and some inputs are variable.

Average variable cost is the ratio of:

variable cost to the quantity of output

Average variable cost is the ratio of:

variable cost to the quantity of output.

A fixed input is one:

whose quantity cannot be changed in the short run.