all out
general
wildcard
examples
curves and lines
100
allows increasing return to production
specialization
100
costs that can not be avoided in the short run
fixed costs
100
costs that change during production
variable costs
100
Rent payments and property taxes would be counted as
fixed costs
100
Which description fits the total-cost curve when the marginal product of labor diminishes
the slope increases as the output increases
200
Atc-__=TC
quantity
200
These costs are calculated by diving the cost by the output
average cost
200
extra cost of production
marginal
200
Tony opens up a hot chocolate stand for two hours. He spends $10 on ingredients and sells $60 worth of tasty beverages. In the same two hours, he could have provided Uber services (illegally because he isn't 18) and earned $40. Tony's accounting profit is ____ and an economic profit of ____.
50,10
200
The marginal cost curve typically does which of the following?
decreases and eventually increases
300
Short-run marginal costs eventually increase due to the effects of
diminishing marginal product
300
When marginal revenue equals marginal cost, a perfectly competitive firm is
maximizing its product
300
In the short run, a perfectly competitive firm produces output and breaks even if:
the firm produces the quantity at which P=ATC
300
Zoe's Bakery determines that P < ATC and P > AVC. Zoe should:
continue to operate even though it is taking economic loss
300
What is the only curve that continues to fall as output increases?
average fixed cost
400
When the marginal product is greater than the average product
average product is increasing
400
In the short run, which cost must continuously decrease as the output produced increases?
average fixed cost
400
What is the difference between Accounting (Normal) Profit and Economic Profit?
opportunity costs
400
If the marginal cost of producing the first unit of a good is $20 and the marginal cost of producing a second unit of the good is $30, the average variable cost of producing 2 units of the good is
25
400
The relationship in the graph best illustrates the economic concept of
diminishing marginal returns
500
Which of the following is the best definition of Marginal Cost?
the cost of producing an additional unit.
500
When a firm is producing zero output, total cost equals
fixed cost
500
A change in Fixed Costs effects
AFC and ATC
500
The average total cost to a firm that is producing 2 units of output is
95
500
If labor is the only variable input of production, the short-run marginal cost curve is upward sloping because which of the following occurs as more labor is added?
Output increases at a decreasing rate, and thus the cost of producing each additional unit of output increases.