Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

23 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)
what are explicit costs
the opportunity costs of production that require a monetary payment
pay for labor services
implicit costs
the opportunity costs of production that do not require a monetary payment
no money
the difference between total revenue and total cost
accounting profits
total revenues minus total explicit costs
economic profits
total revenue minus explicit and implicit costs
sunk costs
costs that have been incurred and cannot be recovered
short run
a period too brief for some production inputs to be varied
long run
a period over which all production inputs are vaiable
total product (TP)
the total output of a good produced by the firm
marginal product
the change in total output of a good that results from a unit change in input
diminishing marginal product
as a variable input increases, with other inputs fixed, a point will be reached where the additions to output wil eventually decline
fixed costs
costs that do not vary with the level of output
variable costs
costs that vary witht he level of output
total variable cost (TVC)
the sum of the firm's variable costs
total cost (TC)
the sum of the firm's total fixed costs and total varialbe costs
average total cost (ATC)
a per unit cost of peration; total cost divided by output
average fixed cost (AFC)
a per unit measure of fixed costs; fied costs divided by output
average variable cost (AVC)
a per unit measure of variable costs; variable costs divided by output
marginal cost
the change in total costs resulting from a one unit change in output
economies of scale
occur in an output range where LRATC falls asw output increases
constant returns to scale
occur in an output range where LRATC does not change as output varies
occur in an output range where LRATC rises as output expands
minimum efficient scale
the output level where economies of scale are exhausted and constatnt returns to scale begin