Test 2: Chapter 9

its fixed costs

If a firm decides to produce no output in the short run, its costs will be

economies of scale

If long run ATC decreases as output increases, this is due to

fixed

Fixed or Variable: Advertising expenses

variable

Fixed or Variable: hourly wage payments

fixed

Fixed or Variable: insurance premiums

fixed

Fixed or Variable: interests on company issued-bonds

fixed

Fixed or Variable: real estate taxes

variable

Fixed or Variable: shipping charges

variable

Fixed or variable: payments for raw payments

Marginal product

The change in total output attributable to the employment of one more worker.

Decline; rise

for most producing firms average total costs _______________ as output is carried to a certain level, and then begins to _________.

fall

if the prices of a firm's variable inputs were to fall, marginal costs, average variable costs and average total costs would __________

Economic cost

the combination of losses of any goods that have a value attached to them by any one individual.

implicit costs

the use of savings to pay operating expenses instead of generating interest income is an example of