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Unformatted text preview: ECON 101 BALABAN Chapter 13 Total revenue the amount a firm receives for the sale of its output. Total cost the market value of the inputs a firm uses in production. Profit total revenue minus total cost. Explicit costs input costs that require an outlay of money by the firm. Implicit costs input costs that do not require an outlay of money by the firm. Economic profit total revenue minus total cost, including both the explicit and implicit costs. Accounting profit total revenue minus total explicit cost. Production function the relationship between the quantity of inputs used to make a good and the quantity of output of that good Production function shows the relationship between the number of workers hired and the quantity of output produced. (X-axis: number of workers. Y-axis: Quantity of Output.) Total-cost curve shows the relationship between the quantity of output produced and total cost of production. (X-axis: quantity of output. Y-axis: total cost.)production....
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This note was uploaded on 04/27/2008 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07