Econ Costs In A Firm Quiz 4 Study Guide

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Posted on

March 14th, 2023

question

Total Revenue =?

answer

Price per unit (P) X Quantity produced and sold (Q)

question

Fixed Costs

answer

Costs that DO NOT vary with output or level of Quantity

question

Variable Costs

answer

Costs that DO vary with output or level of Quantity.

question

TOTAL COST =

answer

Fixed Cost + Variable Cost (FC + VC)

question

Accounting Profit Rule 1

answer

In calculating Accounting Profits only explicit costs are included

question

Accounting Profit Rule 2

answer

Explicit Costs are costs for which you have tangible receipt

question

Economic Profits Rule 1

answer

In calculating Economic Profits both explicit and implicit costs are included

question

Economic Profits Rule 2

answer

Implicit costs are costs for which you have no tangible receipt

question

Law of Diminishing Returns

answer

Marginal Product of any Variable Factor of Production eventually Declines

question

Average Cost /ATC =

answer

Total costs $ / Total Output

question

Marginal Cost =

answer

Change in Total Cost for Change in Output

question

Profits =

answer

Revenue-Costs

question

Marginal Costs Graph

answer

Average Fixed Cost + Average Variable Cost

question

Average Total Costs =

answer

A Transaction that has measurable cost to a firm

Ex: Purchase of New assets

Hiring of workers

purchasing of raw materials

question

Explicit Costs =

answer

A decision which leads to lower income, but is not recorded on a balance sheet

Ex: giving workers a day off-will lead to a drop in sales & income.

question

Implicit Costs =

answer

(FO) return on best forgone option - (CO) return on chosen option

question

Opportunity Cost Formula =

answer

the opportunities forgone in the choice of one expenditure over others.

question

Opportunity Cost

answer

When the marginal magnitude exceeds the average magnitude, the average must rise;

When the marginal magnitude is less than the average magnitude, the average must fall.

Marginal CURVE intersects average curve at a maximum or minimum.

question

Average-Marginal Rule

answer

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1 of 19

question

Total Revenue =?

answer

Price per unit (P) X Quantity produced and sold (Q)

question

Fixed Costs

answer

Costs that DO NOT vary with output or level of Quantity

question

Variable Costs

answer

Costs that DO vary with output or level of Quantity.

question

TOTAL COST =

answer

Fixed Cost + Variable Cost (FC + VC)

question

Accounting Profit Rule 1

answer

In calculating Accounting Profits only explicit costs are included

question

Accounting Profit Rule 2

answer

Explicit Costs are costs for which you have tangible receipt

question

Economic Profits Rule 1

answer

In calculating Economic Profits both explicit and implicit costs are included

question

Economic Profits Rule 2

answer

Implicit costs are costs for which you have no tangible receipt

question

Law of Diminishing Returns

answer

Marginal Product of any Variable Factor of Production eventually Declines

question

Average Cost /ATC =

answer

Total costs $ / Total Output

question

Marginal Cost =

answer

Change in Total Cost for Change in Output

question

Profits =

answer

Revenue-Costs

question

Marginal Costs Graph

answer

Average Fixed Cost + Average Variable Cost

question

Average Total Costs =

answer

A Transaction that has measurable cost to a firm

Ex: Purchase of New assets

Hiring of workers

purchasing of raw materials

question

Explicit Costs =

answer

A decision which leads to lower income, but is not recorded on a balance sheet

Ex: giving workers a day off-will lead to a drop in sales & income.

question

Implicit Costs =

answer

(FO) return on best forgone option - (CO) return on chosen option

question

Opportunity Cost Formula =

answer

the opportunities forgone in the choice of one expenditure over others.

question

Opportunity Cost

answer

question

Average-Marginal Rule

answer

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