Boring Basics
The law of diminishing marginal returns states that...
What is the additional output from each additional worker eventually decreases.
Economies of scale are...
What is when long-run average total cost decreases as output increases, what is this called?
Accounting profit equals total revenue minus…
What are explicit costs?
A firm should shut down in the short run if price falls below…
What is minimum average variable cost?
Marginal product is...
What is the additional output from hiring one more unit of labor?
In the short run, what causes diminishing marginal returns?
What is at least one fixed input?
When increasing all inputs results in proportional increases in output it is known as...
What is constant returns to scale?
Economic profit equals total revenue minus…
What are explicit and implicit costs?
A firm continues producing even when making losses if price covers…
What is average variable cost?
The difference between average total cost and average variable cost is…
What is average fixed cost?
When total product reaches its maximum, marginal product...
What is marginal product becomes zero?
When long-run average total cost increases as output increases it is known as...
What is diseconomies of scale
Normal profit is...
What is an economic profit of zero?
firms can leave the market in the long run but not the short run because...
What is fixed costs exist only in the short run?
When marginal cost is below average total cost, average total cost is…
What is the average total cost is falling?
The relationship between marginal product and marginal cost is...
What is inversely related?
The minimum efficient scale is...
What is the lowest output level where long-run average total cost is minimized?
Firms maximize profit when…
What is when marginal revenue equals marginal cost?
When firms enter a market, supply and price...
What is supply increases and price decreases?
Marginal cost eventually rises because...
What is the law of diminishing marginal returns?
At what point do marginal cost, average variable cost, and average total cost all intersect?
What is the minimum point?
A local bakery sells cupcakes for $3 each. The bakery's fixed costs are $500 per month, and the variable cost to produce each cupcake is $1. How many cupcakes does the bakery need to sell to break even?
What are 250 cupcakes?
If marginal revenue is greater than marginal cost, firms should…
What is increase output?
What part of a firm’s marginal cost curve is its short-run supply curve?
What is the portion above the minimum average variable cost?
For a perfectly competitive firm, price equals…
What is marginal revenue?