Econ Chapter 13

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  1. Total revenue
    the amount of money a firm received from the sale of output
  2. implicit cost
    Entrepreneur's opportunity cost for using his or her resources in his/her business instead of using them somewhere else (ie entrepreneurs forgone salary, forgone interest rate, forgone rest)

    "owner of a firm forgoes  the opportunity to earn a large salary working for a wall street brokerage firm"
  3. john owns a show shine business. his accountant most likely includes which of the following costs on the financial statement
    cost of shoe polish
  4. production function
    relationship between quantity of inputs to make a good and the quantity of output of that good 

    main goal is to max profit by max revenue or min total cost
  5. the long run average total cost
    follows the line below short run average cost
Card Set
Econ Chapter 13
economy final 13
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