BEC Economic Theory review 6

Card Set Information

Author:
Joens1313
ID:
299573
Filename:
BEC Economic Theory review 6
Updated:
2015-03-30 23:35:27
Tags:
BEC Economic Theory review
Folders:

Description:
BEC Economic Theory review 6
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Joens1313 on FreezingBlue Flashcards. What would you like to do?


  1. For a short run cost classification, what is Implicit Cost?
    Implicit costs are amounts that would have been received if resources had been used for other purposes.
  2. For a short run cost classification, what is Opportunity (alternative) costs?
    Opportunity costs are the costs of not engaging in an alternative activity
  3. For a short run cost classification, what is Economic Cost?
    Economic Costs is the income that an entity must provide in order to attract resources suppliers (investors )
  4. For a short run cost classification, what is Economic Profit?
    Economic Profit is total revenue less all economic costs.
  5. For a short run cost classification, what is Normal Profit?
    Normal Profit is the cost of keeping entrepreneurial skills in the organization.
  6. When economic profit is zero, the firm is earning just a -------------- profit or -------------- rate of return.
    When economic profit is zero, the firm is earning just a normal profit or normal rate of return
  7. What is Marginal Revenue?
    The additional revenue from increasing output by one unit
  8. What is Marginal Cost?
    The additional cost from increasing production by one unit
  9. What is marginal Profit?
    The additional profit from increasing output by one unit, the marginal revenue minus marginal cost.
  10. What is marginal product?
    The additional output form increasing input by one unit.
  11. What is the Principle of Diminishing Returns?
    The point at which additional units of variable input will contribute less and less to total production, in other words the marginal production will decline.

What would you like to do?

Home > Flashcards > Print Preview