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
Reading...
Front

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

image

Play button

image

Play button

image

Progress

1/20

Click to flip

20 Cards in this Set

  • Front
  • Back
Total Revenue
The amount a firm recieves for the sale of its output (Ex. I sell 10 cookies for $2 each, TR=$20)
Total Cost
The market value of the inputs a firm uses in production (price of what goes into product)
Profit
Profit= Total Revnue- Total Cost
Explicit Costs
Input costs that require an outlay of money by the firm (You pay $10 for flour to make cookies, $10 is the explicit cost)
Implicit Costs
Input costs that do not require an outlay of money by the firm (I could be making $100/hour working w/ computers but instead im making cookies, that money is the impilict cost)
Economic Profit
TR - TC, including both explicit and implicit costs
Accounting Profit
TR - Total Explicit Costs
Production Function
The relationship between quantity of inputs used to make a good and the quantity of output of that good
Marginal Product
The increase in output that arises from an additional unit of input
Diminshing Marginal Product
The property whereby the marginal product of an input declines as the quantity of the input increases
Fixed Costs
Costs that do not vary w/ the quantity of out produced (Ex. Rent)
Variable Costs
Costs that do vary with the quantity of output produced
Average Total Cost
Total Costs Divided by the quantity of output
Average fixed costs
Fixed costs divided by the quantity of output
Average Variable Cost
Variable costs divided by the quantity of output
Marginal Cost
The increase in total cost that arises from an extra unit of production
Efficient Scale
The quantity of output that minimizes average total cost
Economies of Scale
The property whereby long-run average total cost falls as the quantity of output increases
Constant Returns to Scale
The property whereby long-run average total cost stays the same as the quantity of output changes
Diseconomies of Scale
The property whereby long-run average total cost rises as the quantity of output increases