Chapter 13 Flashcards
Total revenue, for a firm
The amount of firm receives for the sale of its output
Total cost
The total value of the inputs a firm uses in production
Explicit costs
An input of costs that require an outlay of money by the firm
Implicit costs
Input costs that do not require an outlet of money by the firm. 
 profit
Total revenue minus total cost
How an economist views a firm
Economic profit
TR-TC, Including both and explicit and implicit costs 
How an accountant views a firm
Total revenue minus total explicit
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 
Diminishing marginal product
The property whereby the marginal product of an input declines as the quantity of the input increases 
Variable cost
Costs do very with the quantity of output Produced
Average total cost
TC/Q of output
Average fixed cost
FC/Q of output
Average variable cost
AC/Q of output
Marginal cost
Change in TC/change in Q
