TFC, TVC, AFC, AVC, MC,TR, AR, MR TEST QUESTIONS AND ANSWERS

what prices can firms NOT control - ANSWER input prices

how does output price effect demand - ANSWER lower price = higher demand,
higher price = lower demand

how does output price effect firms inputs - ANSWER lower price = higher
demand = higher inputs needed, higher price = lower demand = lower inputs
needed

what happens to MRP if technology changes - ANSWER tech ↑then MPP ↑ then
MRP ↑

what happens to profit maximization point if technology changes - ANSWER
tech ↑ then MRP ↑ so more output is needed to = MFC

TFC - ANSWER total fixed cost

TFC formula - ANSWER add up all fixed costs

TVC - ANSWER total variable costs

TVC formula - ANSWER price of worker x quantity of workers

average fixed cost per unit of output - ANSWER AFC (average fixed cost)

AFC formula - ANSWER AFC = TFC/Y

average variable cost per unit of output - ANSWER AVC (average variable cost)

TC formula - ANSWER total costs = AFC + AVC