Supply & Costs of Production

  1. As more and more of a variable input is added to a fixed input, the resulting additional output  eventually decreases.
    Diminishing Marginal Returns
  2. Costs as defined by accountants are explicit costs.
    Accounting Costs
  3. the value of resources used in production for which explicit payments are made.
    Explicit costs
  4. Costs as defined by economists include both  explicit and implicit costs.
    Economic Costs
  5. The value of resources used in production for which no explicit payments are made.
    Implicit costs
  6. Means that revenues are just covering explicit costs.
    Zero Accounting Profits
  7. Means that revenues are just covering all explicit and implicit costs.
    Zero Economic Profits
  8. A time period in which some inputs are fixed.
    Short run
  9. A time period long enough for all things to change.
    Long run
  10. the smallest level of output at which a firm can minimize long-run average costs.
    Minimum Efficient Scale (MES)
  11. ______ Returns to Scale when long-run ATC is constant
    Constant
Author
FelipeJung
ID
337630
Card Set
Supply & Costs of Production
Description
Last Semester
Updated