Cost of Production Flashcards
1
Q
Total revenue
A
The amount a firm receives for the sale of its output.
2
Q
Total cost
A
The market value of the inputs a firm uses in production.
3
Q
Profit
A
Total revenue minus total cost.
4
Q
Opportunity cost
A
Refers to all things that must be forgone to acquire the item.
5
Q
Explicit cost
A
Input cost that require an outlay of money by the firm.
6
Q
Implicit cost
A
Input cost that does not require an outlay of money by the firm.
