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Cards In This Set
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For a monopolist the maximizing rate of output occurs where
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P=MC
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Rising marginal cost result from
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Falling marginal physical product
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Which of the following is equivalent to ATC
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(FC+VC
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Which of the following are factors of production
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Land labor, capital, entrepreneurship
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A firms total variable cost will depend on
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The prices of variable resourcesthe production techniques usedthe level of output
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The change in total output associated with one additional unit of input is
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The marginal physical product
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Marginal cost
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Is the change in total cost from producing one additional unit of output
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The only cost which do not change with the rate of output are
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Fixed cost
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Cost of production that change with the rate of outputare
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Variable costs
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A u shaped average total cost curve implies
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First marginal cost below average total cost and then marginal cost above
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To the economist total cost includes
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Explicit and implicit costs including a normal profit
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Economies of scale
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Explain why the average total costs decline as output increases in the long run
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The price charged by a profit maximizing monopolist in the long run occurs
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At a price on the demand curve above the intersection where mr=mc
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Under perfect competition in the long run
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Both allocative and productive efficiency are achieved
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Which of the following is consistent with a competitive market
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Zero economic profit in the long run
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