Chapter 13 Notes - Chapter 13 Notes-review slides you slept...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 13 Notes-review slides you slept through asshole Total cost-the market value of the inputs a firm uses in production Curve is positive slop and gets steeper as it goes b/c cost increases as a result of diminishing marginal product property Profit = Total revenue – total cost Cost of production-all opportunity cost of making its output of goods and services Explicit costs-input costs that require an outlay of money by the firm Implicit costs-input costs that do not require outlay of money by the firm Cost of capital can be considered an opportunity cost- ie it could be in a bank earning interest Economic profit= total revenue – (implicit and explicit costs) This is what motivates firms to supply goods and services Important for firm viability Accounting profit= total revenue – explicit costs Accounting profit generally larger b/c it fails to account for implicit costs Production function-relationship between the quantity of inputs and the quantity of outputs
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern