Econ 101 Exam 3 Questions With Correct Answers

Econ 101 Exam 3 Questions With Correct
Answers


Total Costs - CORRECT ANSWER✔✔-TC = TVC + TFC
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Average Variable Costs - CORRECT ANSWER✔✔-AVC = TVC / Q
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Average Total Costs - CORRECT ANSWER✔✔-ATC = AVC + AFC = TC / Q
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Marginal Product - CORRECT ANSWER✔✔-MP = Change in Q / Change
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in Input
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Average Product - CORRECT ANSWER✔✔-AP = Q/Input
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Explicit Costs - CORRECT ANSWER✔✔-actual dollar payments to non-
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owners of the firm | | |




Implicit Costs - CORRECT ANSWER✔✔-the opportunity costs to the firm
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(the opportunity cost of using resources that are owned by the firm--
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there is no market transaction so it is necessary to assign a value to the
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use of this resource)
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, Total Revenue - CORRECT ANSWER✔✔-TR = Price x Quantity
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Accounting Profit - CORRECT ANSWER✔✔-AP = total revenue - total
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explicit costs |




Economic Profit - CORRECT ANSWER✔✔-EP = total revenue - total costs
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(explicit and implicit costs)
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Production Function - CORRECT ANSWER✔✔-relationship between the
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inputs and the outputs in production (output per period of time)
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If MC = AVC - CORRECT ANSWER✔✔-AVC is at its minimum
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If MC < ATC - CORRECT ANSWER✔✔-ATC is decreasing
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If MC > ATC - CORRECT ANSWER✔✔-ATC is increasing
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If MC = ATC - CORRECT ANSWER✔✔-ATC is at its minimum
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In perfect compeition, MP, AR, and P - CORRECT ANSWER✔✔-are the
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same.