Production

Explicit costs are also known as...

accounting costs

The fixed cost per unit is equal to...

average fixed cost

The vertical distance between the average variable cost and average total cost curves gets smaller as more output is produced because this distance is equal to the

average fixed cost, which declines as output increases

The amount of output produced per unit of a resource employed is the...

average product

A condition in which the long-run average total cost of production increases as production increases is called

diseconomies of scale

Economic costs can be defined as the sum of...

explicit and implicit costs

The opportunity costs of using own resources are...

implicit costs

One reason for diseconomies of scale is...

increasing opportunity costs

This will cause the average cause to rise only if it is rising, and can only equal the average cost when it is rising

marginal cost

Costs that change with the amount of __________ produced are variable costs

output

If a company decides to produce zero units of output, it still has to...

pay fixed costs of production

These encourage more firms to enter the market to produce goods and services

positive economic profits

Costs that increase as production increases and decrease as production decreases are...

variable costs