Short-Run-Costs 7.3-8 Hunter Parrott

Question 1

______ ____ is a brief period of time during which only one input can be varied.

Answer 1

Short Run

Question 2

_____ _____ are inputs in the production process that do not change with changes in
output

Answer 2

Fixed Inputs

Question 3

Machinery and Factories are examples of what?

Answer 3

Fixed inputs

Question 4

______ _____ are inputs that can be changed when output changes

Answer 4

Variable inputs

Question 5

What is usually the only variable input?

Answer 5

Labor

Question 6

____ ____are short-run costs that that do not vary with output

Answer 6

Fixed Costs (FC)

Question 7

______ ____ ____ are fixed costs divided by total output.

Answer 7

Average fixed cost (AFC)

Question 8

____ ____ ____ are variable costs divided by total output.

Answer 8

Average Variable Costs (AVC)

Question 9

______ ____ ____ are the summation of AFC and AVC.

Answer 9

Average Total costs (ATC)

Question 10

All firms have _____ inputs in the short run.

Answer 10

Fixed

Question 11

To produce _____, firms have to combine fixed and variable inputs, as the graphic on the left indicates.

Answer 11

output

Question 12

as output approaches infinity, AFC approaches ___?

Answer 12

0

Question 13

See Graph for Vertical Summation

Answer 13

AFC and AVC

Question 14

The ___ curve lies above the other two because it is the summation of AFC and AVC.

Answer 14

ATC