Econ 100 Exam 2 – Questions With Accurate Solutions
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Practice questions for this set
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as the quantity of output goes up the cost per unit goes down
Choose an answer
1 Firm 2 short run
3 revenue equation 4 economies of scale
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Terms in this set (56)
, Firm an organization that combines inputs of labor, capital,
land, and raw or finished component materials to
produce outputs.
production the process of combining inputs to produce outputs,
ideally of a value greater than the value of the inputs.
profit equation profit= total revenue - total cost
revenue The income a firm generates from selling its products
revenue equation total revenue= price x quantity sold
Explicit costs out of pocket costs, actual payments
Ex: wages, rent
implicit costs the opportunity cost of using resources that the firm
already owns
Ex: depreciation of goods, materials, and equipment
accounting profit the difference between dollars brought in and dollars
paid out
economic profit includes both explicit and implicit costs
inputs= resources that firms use to natrual resources, labor, capital, technology , and
produce their products so an example entrepreneurship
would be..
fixed inputs factors of production that can't be easily increased or
decreased in a short period of time
variable inputs factors of production that a firm can easily increase or
decrease in a short period of time
short run period of time during which at least some factors of
production are fixed
long run period of time during which all factors are variable
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Practice questions for this set
Learn 1/7 Study with Learn
as the quantity of output goes up the cost per unit goes down
Choose an answer
1 Firm 2 short run
3 revenue equation 4 economies of scale
Don't know?
Terms in this set (56)
, Firm an organization that combines inputs of labor, capital,
land, and raw or finished component materials to
produce outputs.
production the process of combining inputs to produce outputs,
ideally of a value greater than the value of the inputs.
profit equation profit= total revenue - total cost
revenue The income a firm generates from selling its products
revenue equation total revenue= price x quantity sold
Explicit costs out of pocket costs, actual payments
Ex: wages, rent
implicit costs the opportunity cost of using resources that the firm
already owns
Ex: depreciation of goods, materials, and equipment
accounting profit the difference between dollars brought in and dollars
paid out
economic profit includes both explicit and implicit costs
inputs= resources that firms use to natrual resources, labor, capital, technology , and
produce their products so an example entrepreneurship
would be..
fixed inputs factors of production that can't be easily increased or
decreased in a short period of time
variable inputs factors of production that a firm can easily increase or
decrease in a short period of time
short run period of time during which at least some factors of
production are fixed
long run period of time during which all factors are variable
