Microeconomics Chapter 11: Technology, Production, and Costs

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Drizzle
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285921
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Microeconomics Chapter 11: Technology, Production, and Costs
Updated:
2014-10-15 16:34:53
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Economics
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Chapter 11
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  1. Average fixed cost
    Fixed cost divided by the quantity of output produced.
  2. Average product of labor
    The total output produced by a firm divided by the quantity of workers.
  3. Average total cost
    Total cost divided by the quantity of output produced.
  4. Average variable cost
    Variable costs divided by the quantity of output produced.
  5. Constant reuturns to scale
    The situation in which a firms long-run average costs remain unchanged as it increases output.
  6. Diseconomies of scale
    The situation in which a firms long-run average costs rise as the firm increases output.
  7. Economies of scale
    The situation when a firms long-run average costs fall as it increases the quantity of output it produces.
  8. Explicit cost
    A cost that involves spending money.
  9. Fixed costs
    Costs that remain constant as output changes.
  10. Implicit cost
    A nonmonetary opportunity cost.
  11. Long run
    The period of time in which a firm can vary all its inputs, adopt new technology, and increase or decrease the size of its physical plant.
  12. Long-run average cost curve
    A curve that shows the lowest cost at which a firm is able to produce a given quantity of output in the long run, when no inputs are fixed.
  13. Marginal product of labor
    The additional output a firm produces as a result of hiring one more worker.
  14. Minimum efficient scale
    The level of output at which all economies of scale are exhausted.
  15. Production function
    The relationship between the inputs employed by a firm and the maximum output it can produce with those inputs.
  16. Short run
    The period of time during which at least one of a firms inputs is fixed.
  17. Technology
    The processes a firm uses to turn inputs into outputs of goods and services.
  18. Total costs
    The cost of all inputs a firm uses in production.
  19. Variable costs
    Costs that change as output changes.

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