10/30 notes Flashcards

1
Q

Average total cost (ATC) =

A

Averaged fixed cost (AFC) + Average variable cost (AVC)

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1
Q

what are the two views of the firm

A

-production
-cost

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2
Q

ATC =

A

total cost (TC)/Q

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3
Q

AVC =

A

variable cost (VC)/Q

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4
Q

marginal cost =

A

change in TC/change in Q

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5
Q

profit =

A

total revenue (TR) - total cost (TC)

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6
Q

explicit costs

A

are out-of-pocket costs—payments that are actually made.

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7
Q

implicit costs

A

any cost that has already occurred but not necessarily shown or reported as a separate expense.

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