question
Accounting Profit
answer
The difference between total revenues and explicit costs only.
question
Average Fixed Cost
answer
A firm's total fixed cost divided by total output.
question
Average Product
answer
Total Product divided by the variable input used in production.
question
Diseconomies of Scale
answer
At the stage of output, as a firm's output increases, its long-run average total cost (LRATC) curve increases. The upward sloping part of the LRATC.
question
Economic Profit
answer
Total revenues subtracted by both explicit and implicit costs; this is the type of profit referred to in Economics.
question
Excise Tax
answer
A per-unit tax placed on the sales of a specific product.
question
Fixed Costs
answer
These costs do not change when quantity changes in the short run, but can change in the long run.
question
Law of Diminishing Marginal Returns
answer
The range of output over which smaller and smaller additional units of output are produced as successive equal increments of a variable input are added to fixed quantities of other inputs in the short run.
question
Long Run
answer
Period of time over which supply can fully adjust to changes in demand
question
Lump-Sum Tax
answer
A fixed tax on producers regardless of the amount produced; affects average fixed cost and average total cost.
question
Marginal Cost
answer
What it costs to produce an additional unit of output; equal to ΔTC/ΔQ
question
Marginal Product
answer
How much additional output is produced when an input is added by a firm.
question
Normal Profit
answer
Zero economic profit, where an entrepreneur will not be better off in any other venture.
question
Per-Unit Tax
answer
A tax on each additional unit produced, and affects variable costs: marginal cost, average total cost, and average variable cost.
question
Short Run
answer
Period of time over which supply cannot fully adjust to changes in demand due to fixed resources.
question
Total Costs
answer
The total of fixed and variable costs.
question
Variable Costs
answer
These costs change as production increases.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
