{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

13 The Cost of Production

Principles of Economics, 4th Edition (Student Edition)

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

View Full Document Right Arrow Icon
13. THE COSTS OF PRODUCTION accounting profit total revenue minus total explicit cost average fixed cost fixed costs divided by the quantity of output average total cost total cost divided by the quantity of output average variable cost variable costs divided by the quantity of output constant returns to scale the property whereby long-run average total cost stays the same as the quantity of output changes diminishing marginal product the property whereby the marginal product of an input declines as the quantity of the input increases diseconomies of scale the property whereby long-run average total cost rises as the quantity of output increases economic profit total revenue minus total cost, including both explicit and implicit costs economies of scale the property whereby long-run average total cost falls as the quantity of output increases efficient scale the quantity of output that minimizes average total cost explicit costs input costs that require an outlay of money by the firm fixed costs
Image of page 1

Info icon This 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