HCAD 710 M3

question

short run

answer

period of time in which at least one factor of production is used in fixed quantity

question

long run

answer

planning horizon in that it is a period of time in which all resources can be varied.

question

short run

answer

decision making of this type will focus on how costs of production change as we use more variable resources in combination with at leas one other fixed asset.

question

long run

answer

costs of production is important for planning our future production capabilities.

question

long run

answer

all resources can be varied so there are no "fixed" costs

question

competative advantage

answer

an efficient producer of a good or service has a _______ _______.

question

competitive advantage

answer

offering products of the same quality at lower cost than rivals, offering products of higher quality at the same cost as rivals, or offering products that customers are willing to pay more for.

question

efficient

answer

producing the most valuable output possible given the inputs used.

question

input

answer

good or service used in production.

question

output

answer

good or service produced by an organization.

question

opportunity costs

answer

the value of what one cannot do as a result of making a choice.

question

opportunity costs per unit of input X volume of inputs

answer

the formula for costs

question

total cost/total output

answer

formula for average cost

question

(cost-change)/(output - change)

answer

formula for incremental or marginal cost

question

fixed cost

answer

cost that does not vary when output changes

question

variable cost

answer

a cost that changes when output changes.

question

average costs

answer

these are the total of fixed and variable costs

question

incremental

answer

only variable costs

question

sharing resources

answer

Economies of Scale and Economies of Scope result from

question

economies of scale

answer

when larger organizations have lower average costs.

question

economies of scope

answer

when multiproduct organizations have lower average costs

question

Factors that influence cost

answer

Output costs
input costs
technology
efficiency

All are factors that influence __________

question

reduces cost

answer

technology advances always ______ _______.

question

sunk cost

answer

cost that has been incurred and cannot be recouped.

question

variable

answer

in the long run, all costs are _____________

question

fixed and variable

answer

in the short run, all costs are ...

question

sunk costs

answer

Ignore fixed costs in the short run. They are considered ______________

question

Average Variable Cost

answer

AVC means ?

question

Average Fixed Cost

answer

AFC means?

question

variable costs/total volume

answer

formula for AVC

question

fixed costs/total volum

answer

formula for AFC

question

average costs

answer

Is per unit costs average costs or marginal costs?

question

fixed inputs (short run)

answer

is technology more likely to be related to short-run cost changes or long run cost changes?

question

zero

answer

How much are the TVC (Total Variable Costs) if Q=0

question

stays the same

answer

How much are TFC (Total Fixed Costs) if Q=0?

question

Yes

answer

Does TVC increase as output increases?

question

sunk costs

answer

unrelated to future production

question

demand

answer

the amounts of a product that will be purchased at different prices when all other factors are held constant.

question

demand

answer

central idea of economics

question

market systems

answer

a system that uses prices to ration goods and services.

question

quantity demanded

answer

the amount of a good or service that will be purchased at a specific price when all other factors are held constant.

question

demand curve

answer

a graph that describes how much consumers are willing to buy at different prices.

question

shift in demand (demand curve shift)

answer

This process could be due to the following:
a. drop in income
b. drop in price of a substitute, increase in the price of a complement
c. change in demographics or consumer info.

question

substitution

answer

_______________ explains why a demand curve generally slopes down. That is why consumption of a product usually falls if its price rises.

question

agent

answer

person who provides services and recommendations to clients.

question

principles

answer

the organization or individual represented by an agent.

question

reputation

answer

In some cases, the __________________of an agent is of paramount importance.

question

Law of Demand

answer

if all other factors remain equal, the higher the price of a good, the fewer people will demand that good.

question

True

answer

T/F
Incentives help with the agent/principle problem by encouraging the provider (agent) to provide a better level of care.

1 of 49

question

short run

answer

period of time in which at least one factor of production is used in fixed quantity

question

long run

answer

planning horizon in that it is a period of time in which all resources can be varied.

question

short run

answer

decision making of this type will focus on how costs of production change as we use more variable resources in combination with at leas one other fixed asset.

question

long run

answer

costs of production is important for planning our future production capabilities.

question

long run

answer

all resources can be varied so there are no "fixed" costs

question

competative advantage

answer

an efficient producer of a good or service has a _______ _______.

question

competitive advantage

answer

offering products of the same quality at lower cost than rivals, offering products of higher quality at the same cost as rivals, or offering products that customers are willing to pay more for.

question

efficient

answer

producing the most valuable output possible given the inputs used.

question

input

answer

good or service used in production.

question

output

answer

good or service produced by an organization.

question

opportunity costs

answer

the value of what one cannot do as a result of making a choice.

question

opportunity costs per unit of input X volume of inputs

answer

the formula for costs

question

total cost/total output

answer

formula for average cost

question

(cost-change)/(output - change)

answer

formula for incremental or marginal cost

question

fixed cost

answer

cost that does not vary when output changes

question

variable cost

answer

a cost that changes when output changes.

question

average costs

answer

these are the total of fixed and variable costs

question

incremental

answer

only variable costs

question

sharing resources

answer

Economies of Scale and Economies of Scope result from

question

economies of scale

answer

when larger organizations have lower average costs.

question

economies of scope

answer

when multiproduct organizations have lower average costs

question

Factors that influence cost

answer

Output costs
input costs
technology
efficiency

All are factors that influence __________

question

reduces cost

answer

technology advances always ______ _______.

question

sunk cost

answer

cost that has been incurred and cannot be recouped.

question

variable

answer

in the long run, all costs are _____________

question

fixed and variable

answer

in the short run, all costs are ...

question

sunk costs

answer

Ignore fixed costs in the short run. They are considered ______________

question

Average Variable Cost

answer

AVC means ?

question

Average Fixed Cost

answer

AFC means?

question

variable costs/total volume

answer

formula for AVC

question

fixed costs/total volum

answer

formula for AFC

question

average costs

answer

Is per unit costs average costs or marginal costs?

question

fixed inputs (short run)

answer

is technology more likely to be related to short-run cost changes or long run cost changes?

question

zero

answer

How much are the TVC (Total Variable Costs) if Q=0

question

stays the same

answer

How much are TFC (Total Fixed Costs) if Q=0?

question

Yes

answer

Does TVC increase as output increases?

question

sunk costs

answer

unrelated to future production

question

demand

answer

the amounts of a product that will be purchased at different prices when all other factors are held constant.

question

demand

answer

central idea of economics

question

market systems

answer

a system that uses prices to ration goods and services.

question

quantity demanded

answer

the amount of a good or service that will be purchased at a specific price when all other factors are held constant.

question

demand curve

answer

a graph that describes how much consumers are willing to buy at different prices.

question

shift in demand (demand curve shift)

answer

This process could be due to the following:
a. drop in income
b. drop in price of a substitute, increase in the price of a complement
c. change in demographics or consumer info.

question

substitution

answer

_______________ explains why a demand curve generally slopes down. That is why consumption of a product usually falls if its price rises.

question

agent

answer

person who provides services and recommendations to clients.

question

principles

answer

the organization or individual represented by an agent.

question

reputation

answer

In some cases, the __________________of an agent is of paramount importance.

question

Law of Demand

answer

if all other factors remain equal, the higher the price of a good, the fewer people will demand that good.

question

True

answer

T/F
Incentives help with the agent/principle problem by encouraging the provider (agent) to provide a better level of care.

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HCAD 710 M3

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