Marginal cost _1. The additional cost from an additional unit of output produced. Production function inputs and output. _2. It shows the relationship between the level of _3. The difference between ATC and AVC in the short- run period. _4. Cost that exists only in the very short run or immediate period. _5. Cost that decreases with the increases in the output produced. _6. A monetary expenditure made to outsiders who supply the inputs. _7. Inputs that do not vary with the level of output. 8. Variable cost per unit of output. 9. It states that as you combine the fixed inputs to the variable inputs, total product increases at an increasing rate continuously increase at a decreasing rate and at a certain point it declines. _10. Cost of self-owned or self-employed resources. _11. The total output produced per unit of a resourced employed. 12. Production period where all factors of production used are variable inputs. Second stage 13. The rational stage of production. _14. A production stage where the firm is over utilizing its fixed input. _15. It is J shaped curve. TRUE OR FALSE _1. Land and managerial talent are fixed inputs in the short-run. _2. Rent, depreciation and salary of the managers are variable costs in the short-run. _3. Implicit cost of a resource is counted as economic cost due to the opportunity cost of the said resource. _4. When TP is maximum, MP is negative. 5. In the short-run period, TC=TFC at zero output. _6. In the long-run, ATC = AVC. _7. From the economist's point of view, the real importance of cost lies in the fact they represent constraints to production. 8. For the firm to reduce its fixed cost, it has to produce more output. 9. Normal profit is part of the firm's implicit cost. _10. In the short-run, the firm's plant capacity or size of the plant is fixed.
Marginal cost _1. The additional cost from an additional unit of output produced. Production function inputs and output. _2. It shows the relationship between the level of _3. The difference between ATC and AVC in the short- run period. _4. Cost that exists only in the very short run or immediate period. _5. Cost that decreases with the increases in the output produced. _6. A monetary expenditure made to outsiders who supply the inputs. _7. Inputs that do not vary with the level of output. 8. Variable cost per unit of output. 9. It states that as you combine the fixed inputs to the variable inputs, total product increases at an increasing rate continuously increase at a decreasing rate and at a certain point it declines. _10. Cost of self-owned or self-employed resources. _11. The total output produced per unit of a resourced employed. 12. Production period where all factors of production used are variable inputs. Second stage 13. The rational stage of production. _14. A production stage where the firm is over utilizing its fixed input. _15. It is J shaped curve. TRUE OR FALSE _1. Land and managerial talent are fixed inputs in the short-run. _2. Rent, depreciation and salary of the managers are variable costs in the short-run. _3. Implicit cost of a resource is counted as economic cost due to the opportunity cost of the said resource. _4. When TP is maximum, MP is negative. 5. In the short-run period, TC=TFC at zero output. _6. In the long-run, ATC = AVC. _7. From the economist's point of view, the real importance of cost lies in the fact they represent constraints to production. 8. For the firm to reduce its fixed cost, it has to produce more output. 9. Normal profit is part of the firm's implicit cost. _10. In the short-run, the firm's plant capacity or size of the plant is fixed.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:36. 46 17:08 O O 8
Exercis..No. 5 - Saved
Exercise No. 5 Production and Costs
Name:
Course & Section:
IDENTIFICATION
Marginal cost
1. The additional cost from an additional unit of
output produced.
Production function
inputs and output.
2. It shows the relationship between the level of
3. The difference between ATC and AVC in the short-
run period.
4. Cost that exists only in the very short run or
immediate period.
5. Cost that decreases with the increases in the output
produced.
6. A monetary expenditure made to outsiders who
supply the inputs.
7. Inputs that do not vary with the level of output.
8. Variable cost per unit of output.
9. It states that as vou combine the fixed inputs to the
variable inputs, total product increases at an increasing rate continuously
decreasing rate and at a certain point it declines.
10. Cost
11. The total output produced per unit of a resourced
increase at a
self-owned or self-employed resources.
employed.
12. Production period where all factors of production
used are variable inputs.
Second stage
13. The rational stage of production.
14. A production stage where the firm is over utilizing
its fixed input.
15. It is J shaped curve.
TRUE OR FALSE
1. Land and managerial talent are fixed inputs in the short-run.
2. Rent, depreciation and salary of the managers are variable costs in
the short-run.
3. Implicit cost of a resource is counted as economic cost due to the
opportunity cost of the said resource.
4. When TP is maximum, MP is negative.
5. In the short-run period, TC=TFC at zero output.
_6. In the long-run, ATC = AVc.
_7. From the economist's point of view, the real importance of cost lies in
the fact they represent constraints to production.
8. For the firm to reduce its fixed cost, it has to produce more output.
9. Normal profit is part of the firm's implicit cost.
10. In the short-run, the firm's plant capacity or size of the plant is fixed.
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