Micro midterm

What is Explicit costs?

• cost that require an outlay of money by the firm

• costs that do not require an outlay of money by the firm

• cost that do not vary with the quantity of output produced

• cost that vary with the quantity of output produced

What is Implicit cost?

• costs that do not require an outlay of money by the firm

• costs that require an outlay of money by the firm

• costs that do not vary with the quantity of output produced

• costs that vary with the quantity of output produced

What is Fixed costs?

• costs that do not vary with the quantity of output produced

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

• The increase in total cost that arise from an extra unit of production

• cost that require an outlay of money by the firm

what is variable costs?

• costs that vary with the quantity of output produced

• The increase in total cost that arises from an extra unit of production

• Fixed cost divided by the quantity of output

• Variable cost divided by the quantity of output

What is Total cost?

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

• Total cost divided by the quantity of output

• costs that do not vary with the quantity of output produced

• costs that require an outlay of money by the firm

What is Average fixed cost?

• fixed cost divided by the quantity of output

• variable cost divided by the quantity of output

• The increase in total cost that arises from an extra unit of production

• costs that require an outlay of money by the firm

What is Average variable cost?

• Variable cost divided by the quantity of output

• Total cost divided by the quantity of output

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

• costs that do not require an outlay of money by the firm

What is Average total cost?

• Total cost divided by the quantity of output

• The increase in total cost that arises from an extra unit of production

• costs that require an outlay of money by the firm

• costs that vary with the quantity of output produced

What is Marginal cost?

• The increase in total cost that arises from an extra unit of production

• total cost divided by the quantity of output

• costs that require an outlay of money by the firm

• costs that do not vary with the quantity of output produced