Production Cost

Q1 How is profit calculated?

• Revenue – Cost

• Marginal Revenue - marginal Cost

• Revenue – Marginal Cost

• Marginal Revenue - Cost

Costs that do not change when the quanity of output produced changes?

• Fixed Costs
• Variable Costs
• Explicit Costs
• Implicit Costs

The market value of all the inputs a firm uses in production.

• Implicit Costs
• Explicit Costs
• Total Costs
• Marginal Costs

The amount a firm receives after all costs have been paid.

• Revenue
• Marginal Profit
• Profit
• Marginal Revenue

Additional cost associated by producing one additional unit of product.

• Fixed Costs
• Average Costs
• Marginal Costs
• Emplicit Costs

The amount a firm receives for the sale of its output.
P x Q = _____

• Profit
• Total Revenue
• Marginal Revenue
• Average Profit

Revenue generated by producing one additional unit of product.

• Marginal Revenue
• Marginal Profit
• Total Revenue
• Average Revenue

Costs that change as the quantity of outputs changes.

• Fixed Costs
• Variable Costs

Occurs when each addition of an input results in declining quantity of the output

• Diminishing Marginal Utility
• Diminishing Marginal Costs
• Diminishing Marginal Returns
• Diminishing Marginal Profits

Marginal product measures the change in:

• total cost brought about by changing production by one unit.
• product price brought about by changing production by one unit.
• a firm’s revenue brought about by changing production by one unit.
• the firm’s additional output brought about by employing one additional unit of input.