Econ 202-T3C13 – Flashcards
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(total cost)/(quantity of output)
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Average total cost =
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the marginal cost curve intersects those curves
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The minimum points of the average variable cost and average total cost curves occur where...
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diseconomies of scale
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Occur when long-run average total costs rise as output increases.
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diminishing marginal product
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If the total cost curve gets steeper as output increases, the firm is experiencing...
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whether it produces output or not
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In the short run, a firm incurs fixed costs...
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variable cost
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If a firm produces nothing, ... will be zero?
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(change in total cost)/(change in quantity)
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Marginal cost is equal to...
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marginal cost
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The cost of producing an additional unit of output is the firm's...
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(change in total cost)/(change in quantity) as well as (change in variable cost)/(change in quantity)
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Marginal cost equals...
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increasing
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When marginal cost is greater than average total cost, average total cost is...
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average total cost is at its minimum
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Marginal cost is equal to average total cost when...
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falling
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If marginal cost is below average total cost, then average total cost is...
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rises
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At all level of production higher than the point where the marginal cost curve crosses the average variable cost curve, average variable cost...
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no level of output where this occurs
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At what level of output will average variable cost equal average total cost if fixed costs are positive?
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variable
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In the long run, inputs that were fixed in the short run become...
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economies of scale
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Occur when long-run average total costs fall as output increases.
