Output And Costs Flashcards
(8 cards)
1
Q
When a firms marginal product equals the average product
A
The average product is at its maximum
2
Q
TVC =
A
Sum of all costs that rise as output increases
3
Q
MC =
A
INCREASE IN TOTAL COST DIVIDED BY THE INCREASE IN OUTPUT
4
Q
ATC =
A
TC/output
5
Q
Different between ATC and AVC curves is the
A
Fixed cost and the vertical distance will decrease as output increases
6
Q
AFC…
A
Decreases as output increases
7
Q
Common source of diseconomies of scale is…
A
The growing complexity of management and organisational structure
8
Q
Dead weight loss can be a result of..
A
Both overproduction and underproduction
