Production #1
The period when we discuss long-run
What is the length of the longest fixed input
Long run atc increases as output increases
What is diseconomies of Scale
Cost of all the inputs a firm uses in production
What is total cost
Outputs
What is goods
Total Cost / Quantity
What is Average Total Cost
Production function assumes
What is businesses are as efficient as possible
Long run atc decreases as output increases
What is economies of scale
Costs that remain constant as output changes
What are fixed costs
Long run atc is constant as output increases
What is constant returns to scale
Fixed Cost / Quantity
What is Average Fixed Cost
Inputs
What are Factors of production
Helps determine the number of firms in the market
What is minimum efficient scale
Additional cost of producing one more unit of a good or service
What is marginal cost
Factor of production that take longer to obtain or change (ex:machines)
What are fixed inputs
Profit Maximizing Rule
What is MC=MR
Piece of knowledge needed by the producer to use the production function
What is how long it takes them at each step of the production process
Three stages in production
What are increasing marginal returns, decreasing marginal returns, negative marginal returns
Costs that change as output changes
What are variable costs
Constant returns to scale is also known as
What is efficient scale
Variable Cost / Quantity
What is Average Variable Cost
Factors of production
What is land, labor and capital
The period when we discuss long-run
What is the length of the longest fixed input
If TC, ATC, AFC, and MC all change, this is an example of?
What are variable cost changes
As variable resources are added to fixed resources the additional output produced by each new worker will eventually fall.
What is the law of Diminishing Marginal Utility
Firms sell their products at a price from the market
What is Price Taker