short run
This term refers to the total cost of producing a specific quantity of output
What is Total Cost?
This term refers to the total amount of money a firm recieves from selling its products
What is Total Revenue?
This term refers to the cost incurred by a firm or using a factor of production
What are factor costs?
This term refers to the maximum amount of revenue a firm can generate by using all possible production techniques and factors of production
What is total revenue?
This term refers to the difference betweeen total revenue and total cost
What is Economic profit?
In the short run, this type of revenue is calculated by multiplying the price per unit by the quantity sold
What are fixed costs?
In the short run, this type of revenue is calculated by multiplying the price per unit by the quantity sold
What is Price x Quantity
What are variable costs?
In the long run, this type of revenue equals total revenue divided by the quantity of output
What is average revenue?
What is accounting profit?
True or False? Marginal cost eventually decreases as output increases in the short run
False. What is Marginal Cost eventually increases as output increases in the short run
True or False: Average revenue is equal to marginal revenue in all market structures in the short run
True What is long run average total cost curve can never be below the short run average total cost curve?
True or False: in the long run, firms always earn economic profits in monopolistically competitive markets
False
True or False: A firm can earn positive economic profits in the short run even if accounting profits are zero
True.
This term describes the additional cost incurred by producing one more unit of output in the short run
What is marginal cost?
In the short run, this term describes the situation where a firms total revenue exceeds its total variable costs but falls short of covering total costs
What is operating at a loss?
This term refers to the situation where long run average total cost decreases as output increases
What are economies of scale?
This term describes the situation where a firm's long run average total cost cruve is tangent to its demand curve
What is productive efficiency?
In the short run, this term describes the situation where a firm's total revenue exactly equals its total variable costs
What is breaking even?
Identify one factor that can cause economies of scale in the short run
What is specialization of labor or managerial inefficiencies?
Identify one factor that can cause diseconomies of scale in the short run
What is coordination problems or lack of economies of scale?
Identify one factor that can cause economies of scale in the long run
What is specialization of labor or technological advancements?
Identify one factor that can cause diseconomies of scale in the long run
What is coordination of problems or lack of economies of scale?
Identify one factor that can cause economies of scope in the short run
What is shared resources?