Blackstock test 2 microeconomics 202 Flashcards
formula for total costs
total fixed costs + total variable costs = total costs
total fixed costs + total variable costs = ___ ___
total costs formula
fixed costs change from period to period. TF
F
fixed costs do not change from period to period. TF
T
fixed costs include ___ ___
opportunity costs
___ ___ include opportunity costs
fixed costs
if you’re earning an economic profit, you made the ___ choice and vice versa
right
if you’re earning an ___ ___, you made the right choice and vice versa
economic profit
the ___ you produce, the ___ your variable cost
more, higher
the more you ___, the higher your ___ ___
produce, variable cost
average total cost formula
ATC = AFC + AVC
OR
TC/Q = ATC
AFC + AVC = _____
OR
TC/Q = ____
average total cost
average variable cost formula
AVC = TVC/Q
TVC/Q = ____
AVC
Average fixed cost formula
TFC/Q
TFC/Q = ___
Average fixed cost
marginal cost formula
change in total cost / change in quantity
change in total cost / change in quantity
marginal cost formula
as quantity increases, average fixed cost approaches zero. TF
T
as quantity decreases, average fixed cost approaches zero. TF
F
as quantity increases, average total cost approaches zero. TF
F
define The law of diminishing marginal production
a situation in which adding more and more of a variable input to a fixed plant results in smaller and smaller amounts of additional output produced
a situation in which adding more and more of a variable input to a fixed plant results in smaller and smaller amounts of additional output produced
The law of diminishing marginal production
average variable cost is “___” shaped because of the law of diminishing marginal production
U shaped