MicroECON Chapter 9
________ costs equals the change or difference in total cost divided by the change or difference in output.
marginal
Costs exist because resources:
are scarce and have alternative uses
In time, the growth of a firm's plant size and output may lead to ____ and ____
Higher average total costs; diseconomies of scale
A firm's ____ costs are the opportunity cost of using its self-owned, self-employed resources
Implicit
The _____ cost of a resource is the value or worth the resource would have and it's best alternative use
Opportunity
The paper for printing text books is not available for printing encyclopedias or romance novels. This is an example of an
Opportunity cost
Average variable cost equals total variable cost divided by total
Output
If the firm's total revenue is equal to its implicit and explicit costs, then the firmest said to earn
1) accounting profit 2) zero economic profit 3) normal profit
In general, what production characteristic implant size scale are required for efficient capital usage to be effective?
1) high production volume 2) large scale producers
Which of the following resources confirm easily and quickly adjust?
1) raw materials 2) fuel 3) hourly labor
What is the definition of explicit costs?
1) A firm's monetary payments made for the use of resources owned by others 2) A firm's monetary payment to those who supply labor services, materials, fuel, and transportation services
When a firm chooses to produce the appropriate level of output, it has made:
A decision at the margin
Cost curves shift due to changes in either resource prices or _____
Technology
Average total cost for any output level equals total cost ____ by output
Divided
Which of the following are examples of an opportunity cost?
b) The opportunity cost of the paper used in printing textbooks is the value it would have in printing encyclopedias or romance novels. c) The opportunity cost of steel used in constructing office buildings is the value it would have in manufacturing automobiles or refrigerators.
