ECON 2100 Exam 3 Questions With Correct
Answers
Total |revenue |(TR) |- |CORRECT |ANSWER✔✔-Amount |a |firm |receives |for |the |sale |of |its |outputs
Total |cost |(TC) |- |CORRECT |ANSWER✔✔-Amount |a |firm |pays |to |buy |its |outputs
Profit |- |CORRECT |ANSWER✔✔-Total |revenue |- |total |cost
Explicit |costs |- |CORRECT |ANSWER✔✔-Opportunity |costs |that |require |the |firm |to |pay
Implicit |costs |- |CORRECT |ANSWER✔✔-Opportunity |costs |that |don't |require |a |cash |outlay. |Ex: |
lost |interest |from |money |used |to |start |business |that |could |have |been |in |the |bank
Total |cost |of |someone's |business |is |the |sum |of |_______ |and |_______ |- |CORRECT |
ANSWER✔✔-Explicit |costs; |implicit |costs
Economic |profit |- |CORRECT |ANSWER✔✔-Measured |by |economists. |Total |revenue |- |(explicit |
costs |+ |implicit |costs)
Accounting |profit |- |CORRECT |ANSWER✔✔-Measured |by |accountants. |Total |revenue |- |explicit |
costs.
Production |function |- |CORRECT |ANSWER✔✔-The |graph |that |shows |the |relationship |between |
the |quantity |of |inputs |(workers, |machines, |etc.) |and |quantity |of |outputs |(products)
, Marginal |product |- |CORRECT |ANSWER✔✔-The |increase |in |the |quantity |of |output |obtained |
from |one |additional |unit |of |that |input
Diminishing |marginal |product |- |CORRECT |ANSWER✔✔-When |marginal |product |decreases |the |
more |the |input |increases
- |Ex: |when |you |add |more |workers |in |a |bakery |it |gets |crowded |so |the |more |you |add, |the |less |
the |amount |of |cookies |is |gonna |increase
- |This |also |means |the |cost |is |increasing |exponentially |compared |to |the |cookie |increase
Fixed |costs |- |CORRECT |ANSWER✔✔-Do |not |vary |with |the |quantity |of |outputs |produced. |Ex: |
rent
Variable |costs |- |CORRECT |ANSWER✔✔-Changes |as |the |quantity |of |outputs |produced |changes. |
Ex: |workers' |wages, |$ |spent |on |cookie |dough
Total |cost |is |the |sum |of |_______ |and |________ |- |CORRECT |ANSWER✔✔-Fixed |costs; |variable |
costs
Average |total |cost |(ATC) |- |CORRECT |ANSWER✔✔-Cost |of |a |typical |unit |produced. |TC |/ |Q
Average |fixed |cost |(AFC) |- |CORRECT |ANSWER✔✔-Fixed |cost |/ |quantity |of |output |(FC |/ |Q)
ATC |= |- |CORRECT |ANSWER✔✔-AFC |+ |AVC
Marginal |cost |(MC) |- |CORRECT |ANSWER✔✔-Amount |TC |rises |when |the |firm |increases |
production |by |1 |unit |(dTC |/ |dQ)
Marginal |cost |_____ |with |the |quantity |of |output |- |CORRECT |ANSWER✔✔-Rises
Answers
Total |revenue |(TR) |- |CORRECT |ANSWER✔✔-Amount |a |firm |receives |for |the |sale |of |its |outputs
Total |cost |(TC) |- |CORRECT |ANSWER✔✔-Amount |a |firm |pays |to |buy |its |outputs
Profit |- |CORRECT |ANSWER✔✔-Total |revenue |- |total |cost
Explicit |costs |- |CORRECT |ANSWER✔✔-Opportunity |costs |that |require |the |firm |to |pay
Implicit |costs |- |CORRECT |ANSWER✔✔-Opportunity |costs |that |don't |require |a |cash |outlay. |Ex: |
lost |interest |from |money |used |to |start |business |that |could |have |been |in |the |bank
Total |cost |of |someone's |business |is |the |sum |of |_______ |and |_______ |- |CORRECT |
ANSWER✔✔-Explicit |costs; |implicit |costs
Economic |profit |- |CORRECT |ANSWER✔✔-Measured |by |economists. |Total |revenue |- |(explicit |
costs |+ |implicit |costs)
Accounting |profit |- |CORRECT |ANSWER✔✔-Measured |by |accountants. |Total |revenue |- |explicit |
costs.
Production |function |- |CORRECT |ANSWER✔✔-The |graph |that |shows |the |relationship |between |
the |quantity |of |inputs |(workers, |machines, |etc.) |and |quantity |of |outputs |(products)
, Marginal |product |- |CORRECT |ANSWER✔✔-The |increase |in |the |quantity |of |output |obtained |
from |one |additional |unit |of |that |input
Diminishing |marginal |product |- |CORRECT |ANSWER✔✔-When |marginal |product |decreases |the |
more |the |input |increases
- |Ex: |when |you |add |more |workers |in |a |bakery |it |gets |crowded |so |the |more |you |add, |the |less |
the |amount |of |cookies |is |gonna |increase
- |This |also |means |the |cost |is |increasing |exponentially |compared |to |the |cookie |increase
Fixed |costs |- |CORRECT |ANSWER✔✔-Do |not |vary |with |the |quantity |of |outputs |produced. |Ex: |
rent
Variable |costs |- |CORRECT |ANSWER✔✔-Changes |as |the |quantity |of |outputs |produced |changes. |
Ex: |workers' |wages, |$ |spent |on |cookie |dough
Total |cost |is |the |sum |of |_______ |and |________ |- |CORRECT |ANSWER✔✔-Fixed |costs; |variable |
costs
Average |total |cost |(ATC) |- |CORRECT |ANSWER✔✔-Cost |of |a |typical |unit |produced. |TC |/ |Q
Average |fixed |cost |(AFC) |- |CORRECT |ANSWER✔✔-Fixed |cost |/ |quantity |of |output |(FC |/ |Q)
ATC |= |- |CORRECT |ANSWER✔✔-AFC |+ |AVC
Marginal |cost |(MC) |- |CORRECT |ANSWER✔✔-Amount |TC |rises |when |the |firm |increases |
production |by |1 |unit |(dTC |/ |dQ)
Marginal |cost |_____ |with |the |quantity |of |output |- |CORRECT |ANSWER✔✔-Rises
