Output and Costs - Custom Scholars
Home » Flash Cards » Output and Costs

# Output and Costs

question
Fixed input
any resource for which the quantity cannot change during the period of time under consideration
question
Fixed input examples:
management organization structure, level of technology, buildings and large equipment
question
Variable input
any resource for which the quantity can change during the period of time under consideration
question
Short run
a period of time where there is at least one fixed input
question
Long run
a period of time long enough so that all inputs are variable
question
Production function
the relationship between the maximum amounts of output that a firm can produce and various quantities of inputs
question
Marginal Product
the change in total output produced by adding one unit of a variable input, with all other inputs used being held constant
question
Law of diminishing returns
the principle that beyond some point the marginal product decreases as additional units of a variable factor are added to a fixed factor
question
Average Product
of a variable input is the total output produce with a particular quantity of the variable input divided by the quantity of the variable input
question
Marginal Product of X
the change in the total output divided by the change in the quantity of variable input X. This is a midpoint estimate of MPx
question
Average Product of X
equals total output produced by the quantity of X
question
Average Product Curve
shows the average product that is generated by input at each level of input
question
Total Fixed Cost
Costs that do not vary as output varies and that must be paid even if output is zero
question
Total Variable Cost
Costs that are zero when output is zero and vary as output varies
question
Total Cost
the sum of total fixed cost and total variable costs at each level of output
question
Averaged Fixed Cost
Total fixed cost divided by the quantity of output produced
question
Average Variable Cost
the total variable cost divided by the quantity of output
question
Average Total Cost
the total cost divided by the quantity of output
question
Marginal Cost
the change, denoted as Δ, in total cost when one additional unit of output is produced
question
Shifts in the Cost Curves are due to
changes in technology and resource prices due to taxes and government regulation
question
If the resource prices fall, cost curves will
shift downward
question
Higher taxes or more regulation will shit the cost curves
upward
question
An increase in technology that allows more output to be produced from the same resources shifts the cost curves
downward
question
Long run marginal cost curve
the additional cost of producing an additional unit of output when all inputs, including plant size, can be varied
question
Long-run average total cost
the lowest per unit cost of producing any level of output when the usage of all inputs can be varied
question
Economies of Scale
a situation in which the long run average cost curve declines as the firm increases output (greater specialization of labor and capital)
question
Diseconomies of Scale
a situation in which the long run average cost curve rises as the firm increases output (difficulty managing large quantity)
question
The minimum efficient scale
the smallest quantity of output at which the long-run average cost curve reaches its lowest level
1 of 28
question
Fixed input
any resource for which the quantity cannot change during the period of time under consideration
question
Fixed input examples:
management organization structure, level of technology, buildings and large equipment
question
Variable input
any resource for which the quantity can change during the period of time under consideration
question
Short run
a period of time where there is at least one fixed input
question
Long run
a period of time long enough so that all inputs are variable
question
Production function
the relationship between the maximum amounts of output that a firm can produce and various quantities of inputs
question
Marginal Product
the change in total output produced by adding one unit of a variable input, with all other inputs used being held constant
question
Law of diminishing returns
the principle that beyond some point the marginal product decreases as additional units of a variable factor are added to a fixed factor
question
Average Product
of a variable input is the total output produce with a particular quantity of the variable input divided by the quantity of the variable input
question
Marginal Product of X
the change in the total output divided by the change in the quantity of variable input X. This is a midpoint estimate of MPx
question
Average Product of X
equals total output produced by the quantity of X
question
Average Product Curve
shows the average product that is generated by input at each level of input
question
Total Fixed Cost
Costs that do not vary as output varies and that must be paid even if output is zero
question
Total Variable Cost
Costs that are zero when output is zero and vary as output varies
question
Total Cost
the sum of total fixed cost and total variable costs at each level of output
question
Averaged Fixed Cost
Total fixed cost divided by the quantity of output produced
question
Average Variable Cost
the total variable cost divided by the quantity of output
question
Average Total Cost
the total cost divided by the quantity of output
question
Marginal Cost
the change, denoted as Δ, in total cost when one additional unit of output is produced
question
Shifts in the Cost Curves are due to
changes in technology and resource prices due to taxes and government regulation
question
If the resource prices fall, cost curves will
shift downward
question
Higher taxes or more regulation will shit the cost curves
upward
question
An increase in technology that allows more output to be produced from the same resources shifts the cost curves
downward
question
Long run marginal cost curve
the additional cost of producing an additional unit of output when all inputs, including plant size, can be varied
question
Long-run average total cost
the lowest per unit cost of producing any level of output when the usage of all inputs can be varied
question
Economies of Scale
a situation in which the long run average cost curve declines as the firm increases output (greater specialization of labor and capital)
question
Diseconomies of Scale
a situation in which the long run average cost curve rises as the firm increases output (difficulty managing large quantity)
question
The minimum efficient scale
the smallest quantity of output at which the long-run average cost curve reaches its lowest level

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.