11/3 notes

Question 1

fixed cost

Answer 1

cost that does not change with an increase or decrease in amount of goods or services produced or sold

Question 2

what happens when price is below average total cost

Answer 2

LOSS

Question 3

how do you find marginal revenue

Answer 3

the same way you find marginal utility

Question 4

what happens when price is over ATC on graph

Answer 4

revenue

Question 5

fixed cost is what they spend on _____

Answer 5

capital

Question 6

revenue

Answer 6

the total amount of income generated by sale of goods or services related to companys primary operations

Question 7

profit

Answer 7

amount of income that remains after accounting for all expenses, debts, additional income streams and operating costs

Question 8

what happens when price is below AVC

Answer 8

it gets shut down

Question 9

capital

Answer 9

financial assets or value of assets, such as fund geld in deposit accounts as well as tangible machinery and production equipment