Microeconomics ch 13

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fillup
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136229
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Microeconomics ch 13
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2012-02-18 21:33:58
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Microeconomics 13
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Microeconomics ch 13
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  1. Total Revenue
    The amount a firm recieves for the sale of its output.
  2. Total Cost
    The market value of the inputs a firm uses in production.
  3. Profit
    Total revenue minus total cost.
  4. Explicit Costs
    Input costs that require an outlay of money by a frim.
  5. Implicit Costs
    Input costs that do not require an outlay of money by the firm.
  6. Economic Profit
    Total Revenue minus total cost, including both explicit and implicit costs.
  7. Accounting Profit
    Total revenue minus total explicit cost.
  8. Production Function
    The relationship between quantity of inputs used to make a good and the quantity of output of that good.
  9. Marginal Product
    The increase in output that arises from an addtional unit of input.
  10. Diminishing Marginal Product
    The property whereby the marginal product of an input declines as the quantity of the input increases.
  11. Fixed Costs
    Costs that do not vary with the quantity of output produced.
  12. Variable Costs
    Costs that vary with the quantity of output produced.
  13. Average Total Costs
    Total Cost divided by the quantity of output.
  14. Average fixed Cost
    Fixed cost divided by the quantity of output.
  15. Average Variable Cost
    Variable cost divided by the quantity of output.
  16. Marginal Cost
    The increase in total cost that arises from an extra unit of production.
  17. Efficient Scale
    The quantity of output that minimizes average total cost.
  18. Ecomonies of Scale
    The property whereby long-run average total cost falls as thequantity of output increases.
  19. Diseconomies of Scale
    The property whereby long-run average total cost rises as the quantity of output increases.
  20. Constant returns to scale
    The property whereby long-run average total cost stays the same as the quantity of output changes.

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