Midterm2_definitions - Definitions for Second Midterm...

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Definitions for Second Midterm Economics 304K:Principles of Microeconomics Prof. Meg Ledyard This list contains the vocabulary for the second midterm. You are only responsible for the definitions that are starred (*), but you should know how to calculate the others. Again, I will ask for definitions for 3 of these. Chapter 13 Total Revenue (TR) – The amount a firm receives for the sale of its output. Total Cost (TC) – The market value of the inputs a firm uses in production. Profit ( π ) – 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 (opportunity costs). *Economic Profit – Total revenue minus explicit costs minus implicit costs *Accounting Profit – Total revenue minus explicit costs Production Function – The relationship between quantity of inputs used to make a good, and the quantity of output of that good. *Marginal Product
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This note was uploaded on 09/14/2009 for the course ECON 304K taught by Professor Ledyard during the Fall '08 term at University of Texas at Austin.

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Midterm2_definitions - Definitions for Second Midterm...

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