Abbreviations
TP
What is Total Product
MC
What is Marginal Cost
The period of time where a firm can change both fixed and variable inputs.
What is Long Run
TP/L
What is Average Product
TR
What is Total Revenue
MP
What is Marginal Product
Fixed Cost + Variable Cost
What is Total Cost
Total quantity of output
What is Total Product
△TP/△L
VC
What is Variable Cost
AP
What is Average Product
What you give up to start a business
What is Implicit Cost
Can be changed in the short run to change production
What is a Variable Input
FC/Q
What is Average Fixed Cost
A firm does this when TR<VC
What is shutting down
ATC
Typical Business Expenses
What is Explicit Costs
Additional output produced by one more
What is Marginal Product
△TC/△Q
Marginal Cost
A Firm does this when TR=TC
What is Staying open
LRAVC
What is Long Run Average Variable Cost
Additional cost of producing one more unit of an output
What is Marginal Cost
Outputs increasing at a faster rate than all inputs
What is Increasing Returns to Scale
TR-(Explicit costs +Implicit costs)
What is Economic Profit
What a firm does when VC<TR<TC
What is staying open