Managerial Economics-October 4, 2024

Which of the following would be an example of a fixed cost on a farm?

• Mortgage on the land

• Cost of seed

• Fuel to operate machinery

• Fertilizer

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...

• fixed cost

• variable cost

Additional cost associated by producing one additional unit of product.

• Fixed Costs
• Average Costs
• Marginal Costs
• Implicit Costs

Input costs that may not have a direct outlay of money.  Value of the opportunity cost.

• Fixed Cost
• Variable Cost
• Implicit Cost
• Explicit Cost

Costs that change as the quantity of outputs changes.

• Fixed Costs
• Variable Costs

Fixed Cost divided by the quantity of output.

• Average Fixed Cost
• Average Variable Cost
• Marginal Cost
• Marginal Fixed Cost

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

Total Costs / Quantity = _____

• Marginal Cost
• Average Total Cost
• Implicit Cost
• Explicit Cost

Change in Total Revenue/Change in Quantity
ΔTR/ΔQ = _____

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

 Total Revenue - Total Cost = _____

• Profit
• Revenue
• Marginal Revenue
• Variable Revenue