ECN 1AY Midterm 3| Ques ons and answers | Updated
RATED A+
Profit
total revenue - total cost
explicit costs
costs that require a firm to spend money
implicit costs
resources used or things given up where no money changes hands
accoun ng profit
total revenue - total explicit costs
economic profit
total revenue - total explicit costs - total implicit costs
examples of explicit costs
paying wages to workers
paying rent
paying suppliers
diminishing marginal product
if you hold all your other resources fixed and only add more of one resource, you will get more
produc on but at a diminished rate each me
marginal cost
change in total cost / change in quani ty
fixed cost
costs a business has to pay but doesn't vary with units produces
variable costs
costs that do change with units produced
RATED A+
Profit
total revenue - total cost
explicit costs
costs that require a firm to spend money
implicit costs
resources used or things given up where no money changes hands
accoun ng profit
total revenue - total explicit costs
economic profit
total revenue - total explicit costs - total implicit costs
examples of explicit costs
paying wages to workers
paying rent
paying suppliers
diminishing marginal product
if you hold all your other resources fixed and only add more of one resource, you will get more
produc on but at a diminished rate each me
marginal cost
change in total cost / change in quani ty
fixed cost
costs a business has to pay but doesn't vary with units produces
variable costs
costs that do change with units produced
