3.1
The 2 types of inputs
What is Variable and Fixed?
The abbreviation is FC
What is Fixed Cost?
The inputs that can be altered in the short run
What is variable input?
The 2 types of profit
What is accounting and economic?
Total revenue is greater than this
What is total cost?
The 2 types of runs
What is Short and Long?
The abbreviation is VC
What is Variable Cost?
The inputs that can be fixed in the long run
What is no inputs are fixed?
Also known as “out of pocket expenses“
What is explicit costs?
Profit Maximization rule
What is MR = MC?
The abbreviation is TP
What is Total Product?
The abbreviation is ATC
What is Average Total Cost?
The abbreviation is LRATC
What is Long Run Average Total Cost?
Also known as “income foregone”
What is implicit costs?
Marginal Revenue formula
What is change of total revenue / change of quantity?
The abbreviation is MP
What is Marginal Product?
The formula for Average Fixed Cost
What is AFC = FC / Q?
The 3 returns to scale
What is increasing, decreasing, and constant?
Formula for accounting profit
What is total revenue - explicit costs?
Marginal Cost formula
What is change of total cost / change of quantity?
The formula for Average Product
What is APL = TP / L?
The formula for Average Variable Cost
What is AVC = VC / Q?
Also known as efficient scale
What is constant returns to scale?
Formula for economic profit
What is total revenue - explicit and implicit costs?
The firm should produce more output
What is when MR > MC?