Vocab
What cannot be changed in the short run of production?
A fixed inpu
Fixed input example
tools, machines, factories
the sum of fixed and variable costs is _
Total cost
What is the total cost divided by the quantity?
Average total cost
Diseconomies of scale
What is long run ATC increases as output increases
What can be changed in the short run of production?
A variable input
Plant capacity
What is a firms maximum potential level of production
Specialization __
narrowing the production of goods to only a few different items.
What is the variable cost divided by the Quantity?
Average variable cost
LRATC
What is the Long Run Average Total Cost Curve.
What is proportionally smaller in profits or benefits in result of investment?
Diminishing Returns
Variable input example
labor, materials, ingredients
What marginal cost rises
What is diminishing returns
What is the fixed cost divided by the quantity?
Average fixed cost
Economies of scale
What is long run ATC decreases as output increases
What is the total quantity of output produced by a certain amount of inputs?
Meaning of total production
Marginal product represents
What is the slope of total production line
What is a cost that changes with the output
Variable cost
What is change in Total Product divided by change in Labor?
Marginal product
Minimum efficient scale?
What is helping determine number of firms in a market
What is tangible, a human made object that's bought or invested in?
A physical product
Marginal product intersects _
What is the maximum output of Average Product
Fixed cost _
a cost that must be paid even when the output is zero
What is Total Product divided by Labor?
Average product
Efficient scale?
What is long run ATC is constant as output increases