scales
long run atc decreases as input increases
economies of sale
money spent on materials
explicit cost
when Marginal revenue equals marginal cost
change in total product/change in labor equals?
marginal product
the main rule is?
TR<VC
long run atc increases as output increases
diseconomies of sale
the money value of one's opportunity loss
implicit costs
the firm should produce more
when MR>MC
TP/L=?
average product
why should you use it?
deciding whether it is better to stay open and lose money or shut down temporarily
long run atc is constant as input increases
constant return to sale
total revenue-explicit costs
accounting
the firm should produce less
when MR<MC
the change in total revenue /the change in quantity
marginal revenue
to run in the short run, a firm must?
have a total revenue that covers its variable costs.
helps determine the number of firms in the market
minimum efficient scale
total revenue-implicit and explicit costs
economic profit
if TR>TC
the firm earns an economic profit
change in total cost/ the change in total quantity
marginal cost
losses are minimized by
shutting down temporarily
makes a downwards-shaped curve
the long run atc graph
the two types of profit
accounting and economic
if TR<TC
the firm earns and economic loss
TR=TC
the firm breaks even and earns a normal profit
one factor is fixed
short-run production