Econ lec cost of production - Assignment Essays

question

How do you calculate profit

answer

total revenue - total costs

question

How to do calculate total revenue

answer

Q x P

question

What is total cost

answer

Sum of all costs involved in the production of that quantity

question

What are explicit costs

answer

Costs that require money use and spending. ($)

question

What are implicit costs

answer

Costs that do not require money spending. (Time, Opportunity Cost)

question

How do you calculate accounting profit

answer

Total revenue - Explicit costs

question

When companies report their profits, they provide ___ profits

answer

Accounting

question

How do you calculate economic profit

answer

Accounting profit - Implicit costs

question

What is a production function

answer

The relationship between the quantity of inputs and how much output the firm can produce

question

In the short run, some inputs are ___

answer

Fixed

question

The production function tells us how much is produced per day for a given number of ____

answer

Workers

question

What is the marginal product of an input

answer

The increase in quantity of output from an additional unit of the input (holding other inputs constant)

question

How do you calculate marginal product of labor

answer

MPL=ΔQ/ΔL

question

How do we get total cost function

answer

By adding up the costs of all inputs at each quantity

question

What is total cost

answer

Fixed costs + Variable costs

question

What are fixed costs?

answer

Costs that do not vary with the quantity of output produced

question

What are variable cost

answer

Costs that change as output changes

question

How do find average fixed cost (AFC)

answer

fc/q

question

How do find average variable cost (AVC)

answer

vc/q

question

How do you find Average total costs (ATC)

answer

tc/q=afc+avc

question

How do you find marginal cost

answer

Δtc/Δq

question

What is the TC curve

answer

The sum of variable and fixed cost

question

Because of diminishing marginal product, ___ costs increase more as each additional unit is ____.

answer

variable. added

question

Adding FC and VC gives you...

answer

Total cost

question

AFC decreases with ___

answer

question

The AVC curve is U-shaped because:

answer

It first decreases and then increases, reflecting the marginal product of inputs

question

ATC curve is U-shaped because

answer

It starts high given fixed costs

question

ATC curve decreases because

answer

Of AFC. Initially decreases and then increases due to AVC

question

The mc curve is u-shaped and it is the inverse shape of the

answer

marginal product curve(MP)

question

As marginal product of labor initially increases, MC ___

answer

Decreases

question

As marginal product diminishes, the MC ___

answer

Increases

question

The MC curve intersects the ATC curve at its ___ point.

answer

Lowest

question

When the MC of producing another unit is less than the ATC, producing an extra unit ____ the ATC

answer

Decreases

question

When the marginal cost of producing another unit is more than the average total cost, producing an extra unit will ____ the ATC

answer

Increase

question

What is LRATC

answer

Long run average total cost curve

question

Firm can choose from three factory sizes:

answer

S,M,L

question

To produce less than QA, firm will choose size S in the

answer

Long run

question

To produce between QA and QB, firm will choose size M in the

answer

Long run

question

To produce more than QB, firm will choose size L in the

answer

Long run

question

What is economies of sale

answer

When LRATC falls as Q increases

question

What is Constant returns to scale

answer

LRATC constant as Q increases

question

What is Diseconomies of scale

answer

LRATC rises as Q increases

1 of 42

question

How do you calculate profit

answer

total revenue - total costs

question

How to do calculate total revenue

answer

Q x P

question

What is total cost

answer

Sum of all costs involved in the production of that quantity

question

What are explicit costs

answer

Costs that require money use and spending. ($)

question

What are implicit costs

answer

Costs that do not require money spending. (Time, Opportunity Cost)

question

How do you calculate accounting profit

answer

Total revenue - Explicit costs

question

When companies report their profits, they provide ___ profits

answer

Accounting

question

How do you calculate economic profit

answer

Accounting profit - Implicit costs

question

What is a production function

answer

The relationship between the quantity of inputs and how much output the firm can produce

question

In the short run, some inputs are ___

answer

Fixed

question

The production function tells us how much is produced per day for a given number of ____

answer

Workers

question

What is the marginal product of an input

answer

The increase in quantity of output from an additional unit of the input (holding other inputs constant)

question

How do you calculate marginal product of labor

answer

MPL=ΔQ/ΔL

question

How do we get total cost function

answer

By adding up the costs of all inputs at each quantity

question

What is total cost

answer

Fixed costs + Variable costs

question

What are fixed costs?

answer

Costs that do not vary with the quantity of output produced

question

What are variable cost

answer

Costs that change as output changes

question

How do find average fixed cost (AFC)

answer

fc/q

question

How do find average variable cost (AVC)

answer

vc/q

question

How do you find Average total costs (ATC)

answer

tc/q=afc+avc

question

How do you find marginal cost

answer

Δtc/Δq

question

What is the TC curve

answer

The sum of variable and fixed cost

question

Because of diminishing marginal product, ___ costs increase more as each additional unit is ____.

answer

variable. added

question

Adding FC and VC gives you...

answer

Total cost

question

AFC decreases with ___

answer

question

The AVC curve is U-shaped because:

answer

It first decreases and then increases, reflecting the marginal product of inputs

question

ATC curve is U-shaped because

answer

It starts high given fixed costs

question

ATC curve decreases because

answer

Of AFC. Initially decreases and then increases due to AVC

question

The mc curve is u-shaped and it is the inverse shape of the

answer

marginal product curve(MP)

question

As marginal product of labor initially increases, MC ___

answer

Decreases

question

As marginal product diminishes, the MC ___

answer

Increases

question

The MC curve intersects the ATC curve at its ___ point.

answer

Lowest

question

When the MC of producing another unit is less than the ATC, producing an extra unit ____ the ATC

answer

Decreases

question

When the marginal cost of producing another unit is more than the average total cost, producing an extra unit will ____ the ATC

answer

Increase

question

What is LRATC

answer

Long run average total cost curve

question

Firm can choose from three factory sizes:

answer

S,M,L

question

To produce less than QA, firm will choose size S in the

answer

Long run

question

To produce between QA and QB, firm will choose size M in the

answer

Long run

question

To produce more than QB, firm will choose size L in the

answer

Long run

question

What is economies of sale

answer

When LRATC falls as Q increases

question

What is Constant returns to scale

answer

LRATC constant as Q increases

question

What is Diseconomies of scale

answer

LRATC rises as Q increases

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