week 9 cost production Flashcards
1
Q
explicit cost?
implicit cost?
A
is the cost outlay of cash of a business, eg: wages,
do not outlay cash, eg..employers time
2
Q
accounting profit
economic profit
A
accounting profit revenue minus explicit cost
economic profit revenue minus total cost(implicit ++ explicit cost)
3
Q
Production function
A
relates to the output and its determinant. it can be represented by table, graph or chart.
4
Q
Diminishing marginal product?
A
the diminishing of out as an increase in labor or increase in input.
5
Q
Marginal cost?
A
it is the incremental cost of what u want to increase
formula=change in total cost/change in total quantity
