Question

Define

1.substitutes

2. supply

3.ceteris paribus

Match column A with B

Product effieciency

Explicit cost

close down point

allocative efficiency

marginal product

column b

The average number of units of output produced per unit of the varible input

price must equal marginal cost

marginal cost equals marginal revenue

this is the change to the total output resulting from the employment of 1 more unit of a varible factor

average vaible cost is at a minimum

price equals average varible cost

the momentary payments bought or hired by firm

Answer 1

1. Substitutes refer to the alternative products which provide the same values and functions.

2. Supply refers to the willingness of producers to produce and sell at different market price.

3. Ceteris paribus means everything else remaining unchanged. When we study one economic variable, we keep other variables unchanged i.e. ceteris paribus.