Unit 2 Cards Flashcards
1
Q
AVC>P
A
Business will shut down
2
Q
PER UNIT
A
change in ATC + MC
3
Q
LUMP SUM
A
Change in ATC
4
Q
Profit maximizer
A
MC = MR
5
Q
Allocated efficiency
A
MC = P
6
Q
Productively efficient
A
Min ATC
7
Q
AVC>P
A
Stay open
8
Q
Total revenue
A
The amount a firm receives for the sale of its output
9
Q
Total cost
A
The market value of the inputs a firm uses in production
10
Q
Profit
A
Total revenue minus total cost
11
Q
Explicit costs
A
Input costs that require an outlay of money by the firm
12
Q
Implicit costs
A
Input costs that do not require an outlay of money by the firm
13
Q
Economic profit
A
Total revenue minus total cost, including both explicit and implicit costs
14
Q
Accounting profit
A
Total revenue minus total explicit cost
15
Q
Production function
A
The relationship between quantity of inputs used to make a good and the quantity of output of that good
