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.