Question

Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable costs 3.) When marginal revenue equals marginal cost 4.) The change in total product resulting from a change in the labor input 5.) The additional cost of producing one more unit of output 6.) Costs that change with the level of output 7.) Change in total revenue divided by change in output 8.) Total cost divided by output 9.) Costs that do not vary with changes in short-run output 10.) Total quantity, or total output of a good produced at each quantity of labor employed 11.) Total fixed cost divided by output 12.) When long-run average total cost declines as output increases. 13.) Total variable cost divided by output 14.) A measure of average labor productivity and is total product divided by the amount of labor employed 15.) When long-run average total cost increases as output increases.

Answer 1

1. Total revenue minus total cost = Profit.

2. The sum of total fixed and total variable cost = Total cost.

3. When marginal revenue equals marginal cost =Optimal output rule.

4. The change in total product resulting from a change in the labor input = Marginal product.

5. The additional cost of producing one more unit of output = Marginal cost.

6. Costs that change with the level of output = Variable costs.

7. Change in total revenue divided by change in output = Marginal revenue.

8. Total cost divided by output = Average total cost.

9. Costs that do not vary with the changes in short run output =Fixed costs.

10. Total output of good produced at each quantity of labor employed= Total product.

11. Total fixed cost divided by output = Average fixed cost.

12. When long run average total cost declines as output increases = Economies of scale.

13. Total variable cost divided by output = Average variable cost.

14. A measure of average labor productivity and is total product divided by the amount of labor employed = Average product.

15. When long run average total cost increases as output increases = Diseconomies of scale.