Flashcards in Short-Run-Costs 7.3-8 Hunter Parrott Deck (14)
______ ____ is a brief period of time during which only one input can be varied.
_____ _____ are inputs in the production process that do not change with changes in
Machinery and Factories are examples of what?
______ _____ are inputs that can be changed when output changes
What is usually the only variable input?
____ ____are short-run costs that that do not vary with output
Fixed Costs (FC)
______ ____ ____ are fixed costs divided by total output.
Average fixed cost (AFC)
____ ____ ____ are variable costs divided by total output.
Average Variable Costs (AVC)
______ ____ ____ are the summation of AFC and AVC.
Average Total costs (ATC)
All firms have _____ inputs in the short run.
To produce _____, firms have to combine fixed and variable inputs, as the graphic on the left indicates.
as output approaches infinity, AFC approaches ___?
See Graph for Vertical Summation
AFC and AVC