Chapter 22 - Starting for last test

Question 0

physical size of the factories that a firm owns and operates to produce its output

Answer 0

plant size

Question 1

time period when at least one input, such as plant size, cannot be changed

Answer 1

short run

Question 2

time period in which all factors of production can be varied

Answer 2

long run

Question 3

any activity that results in the conversion of resources into products that can be used in consumption

Answer 3

production

Question 4

relationship between the maximum physical output and the quantity of capital and labor used in the production process

Answer 4

production function

Question 5

total product divided by the variable input

Answer 5

average physical product

Question 6

average physical product equation

Answer 6

APP = TP / variable input

Question 7

physical output that is due to the addition of one more unit of a variable factor of production

Answer 7

marginal physical product

Question 8

marginal physical product is the addition of blank

Answer 8

one more unit of something like a unit of laborr

Question 9

observation that after some point, successive equal sized increases in a variable factor of production, such as labor, added to fixed factors of production, will result in smaller increases in output

Answer 9

law of diminishing marginal product

Question 10

given the amount of fixed inputs there is no further positive use for more of the variable input

Answer 10

point of saturation

Question 11

total costs equation

Answer 11

total costs = total variable costs + total fixed costs

Question 12

sum of total fixed costs and total variable costs

Answer 12

totals costs

Question 13

costs that do not vary with output and are fixed for a certain period of time like rent in a building

Answer 13

fixed costs

Question 14

costs that vary with the rate of production like wages paid to workers

Answer 14

variable costs

Question 15

total fixed costs / output

Answer 15

average fixed costs

Question 16

change in total costs due to a one unit change in production rate

Answer 16

marginal cost

Question 17

change in total cost / change in output

Answer 17

marginal cost

Question 18

long run, during which all inputs are variable

Answer 18

planning horizon

Question 19

locus of points representing the minimum unit cost of producing any given rate of output, given current technology

Answer 19

long run cost curve

Question 20

decreases in long run average costs resulting from increases in output

Answer 20

economies of scale

Question 21

division of tasks or operations

Answer 21

specialization

Question 22

large scale firms often require proportionately less input per unit of output

Answer 22

dimensional factor

Question 23

larger the enterprise, the more the firm can take advantage of larger volume types of machinery

Answer 23

improved productive equipment

Question 24

lowest rate of output per unit time at which long run average costs for a particular firm are at a minimum

Answer 24

minimum efficient scale