Production Function
The way a firm combines inputs to produce an output.
What is the production function?
What is a long term production cost?
What is Total cost of producing a good or service over a long period of time where inputs to be adjusted or changed?
How many types of cost are there? And what are they?
What is two, explicit and implicit costs ?
When firms earn positive economic profit, new firms will do this.
What is Enter the Market?
Perfectly competitive firms are considered...
What is price takers?
Fixed inputs can or cannot be changed in the short run?
What is cannot?
In a short run if a firm increases its output by one unit what is the change in total cost called.
What is firms marginal cost?
The formula for total revenue
What is Price * Quantity?
When total revenue < variable costs, a firm should do this...
What is shut down?
_______ is a market structure in which a large number of firms all produce the same product.
What is perfect competition?
When are inputs fixed?
What is in the short run?
As its output increases, a firm's short-run marginal cost will eventually increase because of?
What is diminishing returns?
When Normal Profit occurs...
What is total revenue just covers out of pocket expenses and entrepreneurs costs?
The entry of new firms in a perfectly competitive market causes this curve to shift right.
What is a Market Supply Curve?
A consequence of the demand for something else.
What is derived demand?
MPL= ΔTP/ΔL is the formula for...
What is Marginal Product?
If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be?
What is less than average total cost?
The relationship between normal profit and zero economic profit?
What is the same thing when total revenue covers both explicit and implicit costs?
In the long run, entry and exit of firms cause economic profit to reach this level.
What is Zero economic profit (normal profit)?
_____ is an industry that can expand or contract without affecting the long run per-unit cost of production; the long-run industry supply curve is horizontal
What is constant cost industry?
Marginal Product eventually ___ because of ____
What is fall, diminishing return?
What factors can cause a firm's cost curves to shift upward?
What is Increase in wages?
Profit maximization is determined by using?
What is marginal analysis?
How free entry and exit cause long-run equilibrium.
What is Supply adjusts until P = ATC = MC
The two kinds of efficiency.
What is Productive and allocative?