Flashcards in (7.3-6; 7.3-7; 7.3-8; 7.3-9; 7.3-10)-A. Smith Deck (61)
A guide for how much to produce is?
The cost of labor per unit of output produced
What does AVC stand for?
average cost variable
AVC = ?
VC(total variable cost) / TP (total output)
Does marginal cost and average variable cost
the same concept?
What two things are substantial in finding the
average variable cost?
total variable cost and total output
Do we, as economists, multiply or divide
variable cost and total product to get the average variable cost?
What is AVC good for?
to see if one would make a profit or not
Does AVC vary when we change amount of
When does AVC change?
When the productivity changes
Productivity and cost are ________ related.
As price increases, cost _________.
Marginals and averages always have the
same relationships. True or False
When marginal increases, average ________.
When marginal decreases, average
What is the slope of the variable cost curve.
The AVC curve is at a __________ when it intersects with the MC curve.
When MC is above AVC, it pulls the
When MC is below AVC, it pulls the average
Minimum slope = __________ AVC
Marginal cost is _________ related to
AVC is ________ related to average product.
What is the definition of slop?
rise over run
the curves of MC and AVC are ________
_______ to the curves of MP and AP.
What is on the x-axis on the MC and AVC graph?
Define Short run:
brief period of time that is so short that at
least one input is fixed
Fixed input costs that are constant
The more sets you _______, the more thinly
you can spread your fixed costs out
The more you produce, the more your fixed