micro final exam

question

thomas malthus

answer

invented the law of diminished productivity

question

law of diminished productivity

answer

as increasing amounts of one good are added to fixed amounts of another, eventually increases in output occur at a decreasing rate

question

production function

answer

shows the amount of output that can be produced with a given set of inputs and the given technology

question

total product curve

answer

graphical depiction of the production function

question

marginal product

answer

shows the additional output from using 1 more of a variable input (change in Q/change in L)

question

average product

answer

shows the average amount produced by a certain type of input (Q/L)

question

variable input

answer

an input whose use can be altered

question

fixed input

answer

an input who use can not be altered in the short run

question

implicit costs

answer

these are non-monetary costs

question

explicit costs

answer

these are monetary costs (costs requiring a monetary transaction)

question

short run

answer

the period of time when at least 1 input is fixed

question

long run

answer

the period of time when all inputs use can be altered

question

profits

answer

total revenue-total costs

question

total variable costs

answer

the costs of all the variable inputs

question

total fixed costs

answer

the costs of all the fixed inputs

question

total costs

answer

tvc+tfc

question

average variable costs

answer

what it costs on average in terms of the variable inputs used to produce each unit of output

question

average fixed costs

answer

what it costs on average in terms of the fixed inputs used to produce each unit of output

question

average total costs

answer

what is costs on average to produce each unit of output

question

marginal costs

answer

the change in total cost from producing an additional unit

question

marginal revenue

answer

the change in total revenue from selling an additional unit

question

total revenue

answer

price x units sold (PxQ)

question

perfect competition

answer

many sellers and many buyers producing a homogenous product with free entry and exit

question

price taker

answer

buyers and sellers who have no ability through their actions to alter the market price

question

shut-down point

answer

when the losses from producing are exactly equal to the losses from shutting down for a firm

question

firm's supply curve

answer

marginal cost above the minimum of the AVC

question

long-run average cost curve

answer

outside envelope of the ATC when all inputs usage is altered

question

increasing returns to scale

answer

per unit costs are decreasing as the scale of operations increases

question

constant returns to scale

answer

per unit costs are constant as scale of operations increases

question

decreasing returns to scale

answer

per unit costs are increasing as scale of operations increases

question

increasing cost competitive industry

answer

competitive industry when the long run supply is upwards sloping

question

constant cost competitive industry

answer

competitive industry when the long run supply is horizontal

question

decreasing cost competitive industry

answer

competitive industry when the long run supply is downward sloping

question

monopoly

answer

a single producer of a unique product

question

monopolistic competition

answer

multiple producers of slightly different products

1 of 35

question

thomas malthus

answer

invented the law of diminished productivity

question

law of diminished productivity

answer

as increasing amounts of one good are added to fixed amounts of another, eventually increases in output occur at a decreasing rate

question

production function

answer

shows the amount of output that can be produced with a given set of inputs and the given technology

question

total product curve

answer

graphical depiction of the production function

question

marginal product

answer

shows the additional output from using 1 more of a variable input (change in Q/change in L)

question

average product

answer

shows the average amount produced by a certain type of input (Q/L)

question

variable input

answer

an input whose use can be altered

question

fixed input

answer

an input who use can not be altered in the short run

question

implicit costs

answer

these are non-monetary costs

question

explicit costs

answer

these are monetary costs (costs requiring a monetary transaction)

question

short run

answer

the period of time when at least 1 input is fixed

question

long run

answer

the period of time when all inputs use can be altered

question

profits

answer

total revenue-total costs

question

total variable costs

answer

the costs of all the variable inputs

question

total fixed costs

answer

the costs of all the fixed inputs

question

total costs

answer

tvc+tfc

question

average variable costs

answer

what it costs on average in terms of the variable inputs used to produce each unit of output

question

average fixed costs

answer

what it costs on average in terms of the fixed inputs used to produce each unit of output

question

average total costs

answer

what is costs on average to produce each unit of output

question

marginal costs

answer

the change in total cost from producing an additional unit

question

marginal revenue

answer

the change in total revenue from selling an additional unit

question

total revenue

answer

price x units sold (PxQ)

question

perfect competition

answer

many sellers and many buyers producing a homogenous product with free entry and exit

question

price taker

answer

buyers and sellers who have no ability through their actions to alter the market price

question

shut-down point

answer

when the losses from producing are exactly equal to the losses from shutting down for a firm

question

firm's supply curve

answer

marginal cost above the minimum of the AVC

question

long-run average cost curve

answer

outside envelope of the ATC when all inputs usage is altered

question

increasing returns to scale

answer

per unit costs are decreasing as the scale of operations increases

question

constant returns to scale

answer

per unit costs are constant as scale of operations increases

question

decreasing returns to scale

answer

per unit costs are increasing as scale of operations increases

question

increasing cost competitive industry

answer

competitive industry when the long run supply is upwards sloping

question

constant cost competitive industry

answer

competitive industry when the long run supply is horizontal

question

decreasing cost competitive industry

answer

competitive industry when the long run supply is downward sloping

question

monopoly

answer

a single producer of a unique product

question

monopolistic competition

answer

multiple producers of slightly different products

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