chapter 7 - 1 Economics measure or of any resource used in...

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1. Economics measure ___ , or ___, of any resource used in productions as the value the resource would have in its best alternative use. Opportunity costs; economic costs 2. When a firm makes cash expenditures to those that supply resources, economists call these____. Explicit costs 3. Economists calculate normal profit after accounting for the ___ of ___. Implicit costs; payment for the entrepreneurs time and talents 4. Economic profit (or pure profit) is calculated by subtracting ___ from a firms total revenue. Economic costs (both explicit and implicit) 1. Assume a business buys all its needed capital to keep tens of workers busy with production process, but it only hires one worker. As this firm adds workers, each of whom is able to access the necessary capital and specialize in specific aspects of production, the firm will Increasing marginal returns 2. Using the same example, as this firm adds workers ro the point of overcrowding, the marginal product per worker will ___.
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