The Costs of Production

What are the payments a firm must make, or the incomes it must provide, to attract the resources it needs away from alternative production opportunities called?

A firm's opportunity costs of using its self-owned, self-employed resources are known as what?

If a firm has a total sales revenue of $120,000, explicit costs of $63,000, and implicit costs of $33,000, what is its accounting profit?

What is the term for the payment an entrepreneur could have received for performing entrepreneurial functions in another business venture, which is considered a cost of production?

In microeconomics, what is the defining characteristic of the short run?

The law of diminishing returns states that as successive units of a variable resource are added to a fixed resource, beyond some point the:

According to the data in Table 8.1, at what point does diminishing marginal product begin?

What type of costs in the short run do not change in total regardless of the level of output?

If a firm's total fixed cost (TFC) is $100 and its total variable cost (TVC) is $300 at an output of 4 units, what is its average total cost (ATC)?

What is the term for the extra, or additional, cost of producing one more unit of output?

In the short run, the marginal-cost (MC) curve is a mirror reflection of which productivity curve?

What is the relationship between the marginal-cost (MC) curve and the average-variable-cost (AVC) curve?

If a technological advance increases the productivity of labor, what is the most likely impact on the short-run cost curves?

In the long run, what happens to all production costs?

What does a firm's long-run average-total-cost curve show?

What is the primary cause of economies of scale?

What is the main factor that causes diseconomies of scale?

What does the concept of minimum efficient scale (MES) represent?

A cost that has already been incurred and cannot be recovered is known as a:

If hiring a third unit of labor increases total product from 25 to 45, what is the marginal product of the third unit of labor?

If a firm's total cost increases from $400 to $470 when it increases its output from 4 to 5 units, what is the marginal cost of the fifth unit?

The vertical distance between the average-total-cost (ATC) curve and the average-variable-cost (AVC) curve measures what?

Which of the following would be considered an implicit cost for a firm?

If a firm's economic profit is zero, what can be concluded about its accounting profit?

At which point does the marginal product (MP) curve intersect the average product (AP) curve?

Why is the long-run average-total-cost (ATC) curve typically U-shaped?

If an industry has extensive economies of scale that persist over a wide range of outputs, what type of industry structure is likely to emerge?

In the context of production costs, what is the 'Last Word' article's main advice regarding a nonrefundable ticket to a football game you no longer wish to attend?

If a firm's total fixed cost is $100 and its total variable cost is $170 for producing 2 units, what is its average fixed cost (AFC) at this output level?

What is the relationship between the average-product (AP) curve and the average-variable-cost (AVC) curve?

Why does the average fixed cost (AFC) curve slope continuously downward?

An industry characterized by a U-shaped long-run ATC curve where minimum efficient scale (MES) is achieved at a low level of output is likely to be populated by:

In the example of the Verson stamping machine, which is a 49-foot-tall machine costing $30 million, what concept of production costs does it primarily illustrate?

Total cost (TC) is the sum of:

If a firm has a total fixed cost of $100 and produces 5 units of output with a total cost of $470, what is its total variable cost?

The law of diminishing returns provides the rationale for why:

In a situation with a fixed plant, when a firm's total product is increasing at an increasing rate, what is happening to its marginal product?

If a firm has an economic profit of $24,000 and an accounting profit of $57,000, what is the value of its implicit costs?

If an increase in a firm's output from 8 to 9 units causes total cost to rise from $750 to $880, what is the marginal cost of the ninth unit?

The period in which technology and plant and equipment are fixed is defined as the:

When average product (AP) is at its maximum, what is the relationship between marginal product (MP) and average product?

If a firm has total fixed costs of $100 and its average variable cost is $75 at 6 units of output, what is its average total cost?

A natural monopoly exists when:

What does a range of constant returns to scale on a long-run average total cost curve imply?

If a firm increases all of its inputs by 10 percent and its output increases by 5 percent, the firm is experiencing:

Using the data in Table 8.1, what is the average product (AP) when 5 units of labor are employed?

If a firm pays $10 per unit for labor, and the average product of labor is 10, what is the average variable cost (assuming labor is the only variable input)?

Why must a firm's marginal cost eventually rise in the short run?

When a firm's marginal cost is less than its average total cost, what must be true of the average total cost?

What does the vertical sum of the total fixed cost (TFC) curve and the total variable cost (TVC) curve represent?