Enhance Your Learning with Economics - Cost of Production Flash Cards for quick learning
The total expenses incurred by a firm in producing a particular quantity of goods or services.
Costs that do not vary with the level of production, such as rent, salaries, and insurance.
Costs that change with the level of production, such as raw materials and labor.
The sum of fixed costs and variable costs.
The additional cost incurred by producing one more unit of output.
The total cost per unit of output, calculated by dividing total costs by the quantity produced.
The value of the next best alternative foregone when making a decision.
The cost advantages that a firm can achieve by increasing its scale of production.
Graphical representations of the relationship between costs and the level of production.
The process of minimizing costs while achieving a given level of output.
Inputs that cannot be easily varied in the short run, such as capital and land.
Inputs that can be easily varied in the short run, such as labor and raw materials.
Costs that vary with the level of production in the short run.
Costs that vary with the level of production in the long run.
Costs that have already been incurred and cannot be recovered.
Actual out-of-pocket expenses incurred by a firm in producing goods or services.
Opportunity costs of using resources owned by the firm in its own production process.
Actual expenses incurred by a firm, including both explicit and implicit costs.
The total opportunity cost of producing a particular quantity of goods or services.
A graphical representation of the relationship between average total cost and the level of production in the short run.
A graphical representation of the relationship between average total cost and the level of production in the long run.
As more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease.
The cost advantages that a firm can achieve by producing multiple products together.
The cost disadvantages that a firm can experience when it increases its scale of production beyond a certain point.
The level of production at which total revenue equals total costs, resulting in zero profit.
The level of production at which marginal revenue equals marginal cost, resulting in maximum profit.
The level of production at which marginal revenue equals marginal cost, resulting in minimum loss.
The level of production at which price falls below average variable cost, causing the firm to temporarily cease production.
A graphical representation of the relationship between average cost and the level of production in the long run.
A curve representing all possible combinations of inputs that can produce a given level of output.
A line representing all possible combinations of inputs that can be purchased with a given budget.
The combination of inputs that minimizes the cost of producing a given level of output.
A market structure characterized by a large number of small firms, identical products, and ease of entry and exit.
A market structure characterized by a single firm with significant control over the market, barriers to entry, and unique products.
A market structure characterized by a large number of firms, differentiated products, and ease of entry and exit.
A market structure characterized by a small number of large firms, interdependence, and barriers to entry.
A firm that has no control over the price of the product it sells and takes the market price as given.
A firm that has some control over the price of the product it sells and can influence the market price.
A decision by a firm to temporarily cease production in the short run when price falls below average variable cost.
A decision by a firm to permanently exit the market in the long run when price falls below average total cost.
A market in which there are many buyers and sellers, identical products, and ease of entry and exit.
A market in which there is a single seller with significant control over the market and barriers to entry.
A market in which there are many buyers and sellers, differentiated products, and ease of entry and exit.
A market in which there are a few large sellers, interdependence, and barriers to entry.
A demand curve that is horizontal, indicating that consumers are willing to buy any quantity at a specific price.
A demand curve that is vertical, indicating that consumers are willing to buy a specific quantity at any price.
A demand curve that is relatively flat, indicating that consumers are responsive to changes in price.
A demand curve that is relatively steep, indicating that consumers are not very responsive to changes in price.
A demand curve that has a constant elasticity of demand, indicating that the percentage change in quantity demanded is equal to the percentage change in price.