10/30 notes Flashcards
1
Q
Average total cost (ATC) =
A
Averaged fixed cost (AFC) + Average variable cost (AVC)
1
Q
what are the two views of the firm
A
-production
-cost
2
Q
ATC =
A
total cost (TC)/Q
3
Q
AVC =
A
variable cost (VC)/Q
4
Q
marginal cost =
A
change in TC/change in Q
5
Q
profit =
A
total revenue (TR) - total cost (TC)
6
Q
explicit costs
A
are out-of-pocket costs—payments that are actually made.
7
Q
implicit costs
A
any cost that has already occurred but not necessarily shown or reported as a separate expense.
