studyguide_for_ch6

studyguide_for_ch6 - Outline of Chapter 6 1 Understand the...

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

View Full Document Right Arrow Icon
Outline of Chapter 6 1. Understand the basic knowledge about a business firm (refer to my question in class note.) 2. Explain the difference between the short-run and long-run problem for the firm. 3. Define and graph total and marginal product, and describe the relationships between these concepts. 4. State the law of diminishing returns 5. Distinguish between the different types of costs: explicit versus implicit costs, and fixed versus variable costs. 6. Explain why sunk costs should be ignored when making current decisions and how it is used. 7. Define and graph total cost, total fixed cost and total variable cost. 8. Define and graph average total cost , average fixed cost and average variable cost . 9. Define marginal cost curve and show how it changes as production increases, and explain its relationship with average total cost, average variable cost. 10. State the least-cost rule and explain how it is used. 11. How do we get the long-run average total cost curve by using short-run average total cost curve? Explain how a firm moves from one point to another along its long-run average total cost curve.
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