Marginal Physical Product
What is the term for the extra cost of producing one more unit of output?
In economics,
the marginal cost of production
is the change in total production cost that comes from making or producing one additional unit.
What is the additional output produced when one additional unit of input is added?
marginal product
: The extra output that can be produced by using one more unit of the input.
What is the cost of producing an additional unit of output?
The marginal cost of production
is the cost of producing one additional unit.
What is the change in total output associated with one additional unit?
The change in total output associated with one additional unit of input is the:
Opportunity cost of the output
.
Which of the following terms represents the cost of an additional unit of output?
zero. Which of the following terms represents the cost of an additional unit of output? In economics the word “
marginal
” means: extra or additional.
Which of the following is are not considered a factor of production?
The correct answer is (a)
money
. Money facilitates the production process.
Is the additional cost of producing one more unit of a good?
The marginal cost
is the cost of producing one more unit of a good.
Is the additional or extra benefit associated with an action?
marginal benefit
: The additional benefit from taking a course of action.
What is the additional income from selling one more unit of a good?
Marginal revenue
is the additional income from selling one more unit of a good. It is usually equal to price.
Why is MC supply curve?
A supply curve tells us
the quantity that will be produced at each price
, and that is what the firm’s marginal cost curve tells us. … If the price is $10 or greater, however, she produces an output at which price equals marginal cost. The marginal cost curve is thus her supply curve at all prices greater than $10.
What is the term for costs that vary with output?
Variable costs
are costs that do vary with output, and they are also called direct costs.
What is the average total cost at an output level of four units?
the difference between price and average total cost at the profit-maximizing level of output. What is the average total cost at an output level of four units?
a. $1,200
.
What methods can be used to calculate average total cost?
Total Cost Per-Unit:
The total cost per unit, or the average total cost (ATC), tells us how much a company spends when producing one unit of output. We can calculate the average total cost by
dividing the total costs by the number of units produced
.
Why are short run cost curves U shaped?
Costs in the short run
Short run cost curves tend to be U shaped
because of diminishing returns
. In the short run, capital is fixed. After a certain point, increasing extra workers leads to declining productivity. Therefore, as you employ more workers the marginal cost increases.
What is fixed cost curve?
Total fixed cost curve depicts
the relation between the total fixed cost of production and the level of output while other things being constant
. Since total fixed costs are fixed, the curve representing it, is a horizontal line.
