Calculations
Product
Costs
Revenues
Profits
100
This is how Average Product is measured.
What is total product divided by units of labor (input)
100
This is where marginal product intersects average product.
What is at the maximum of AP?
100
When average costs of production decrease over the long run due to an increase in firm size, this is called ________
What is economies of scale?
100
When a firm has no control over price, this is the Average Revenue curve.
What is the price? (and marginal revenue curve).
100
Please show where maximum profits will be achieved.
What is the output where there is the largest space between total revenue and total costs.
200
This is how marginal product is calculated
What is change in output divded by change in variable input (labor)?
200
This is how AP, AVC, MP and MC relate to one another.
What is MC max = MP min, and AVC min = AP max?
200
These costs have to be paid no matter what, and include things like rent, insurance, and internet.
What are fixed costs?
200
The marginal revenue curve for a firm that has control over price is this (above, below, the same) as Average revenue curve.
What is below?
200
Please show the point(s) at which normal profit is achieved.
What is where TC intersects TR.
300
This is how marginal cost is calculated.
What is change in total cost divided by change in output?
300
True or False: when marginal product is above zero, yet decreasing, total product is decreasing too.
What is false.
300
The beginning of diminishing returns on the MC curve corresponds with this point on the TVC curve.
What is the point where TVC starts increasing at an increasing rate?
300
When a firm controls price, this point is when total revenue is at it's maximum.
What is when marginal revenue = 0?
300
A firm had explicit costs of $75,000 / yr and implicit costs of $35,000 / year. In 2014 revenues were 110,000, in 2015 revenues were 95,000, and in 2016 revenues were $150,000. During this year, the firm had positive accounting profit.
What is all three years. Accounting profit is different than economic profit.
400
This is how marginal revenue is calculated.
What is change in revenue divided by change in output (Q)?
400
Draw TP, MP, and AP, and show increasing and and diminishing returns.
400
These are two reasons that diseconomies of scale occur.
What are coordination and monitoring difficulties, and communication difficulties? (Also: poor worker motivation).
400
This is how total revenue is calculated.
What is P x Q?
400
A firm pays 4000 a month for rent, 2000 a month for insurance, 3500 a month for supplies, 1500 a month for an employee, and the owner forgoes income of 3000 a month. The company makes revenues of 14,000 a month. What is the economic profit?
What is zero economic profit? (or normal profit)
500
This is how normal profit is calculated.
What is total revenue minus total (implicit AND explicit) costs?
500
Total product decreases when marginal revenue ______.
What is "becomes negative"?
500
Draw an LRATC graph with SRATC graphs. Label economies of scale, constant returns to scale, and diseconomies of scale.
What is 
500
This is the difference between revenue and profit.
What is profit is revenue MINUS costs, and revenue is just the total amount made by a firm.
500
At which output should this firm produce?
What is 