Short-Run-Costs 7.3-8 Hunter Parrott Flashcards Preview

Econ 2106 Exam 2 > Short-Run-Costs 7.3-8 Hunter Parrott > Flashcards

Flashcards in Short-Run-Costs 7.3-8 Hunter Parrott Deck (14):
1

______ ____ is a brief period of time during which only one input can be varied.

Short Run

2

_____ _____ are inputs in the production process that do not change with changes in
output

Fixed Inputs

3

Machinery and Factories are examples of what?

Fixed inputs

4

______ _____ are inputs that can be changed when output changes

Variable inputs

5

What is usually the only variable input?

Labor

6

____ ____are short-run costs that that do not vary with output

Fixed Costs (FC)

7

______ ____ ____ are fixed costs divided by total output.

Average fixed cost (AFC)

8

____ ____ ____ are variable costs divided by total output.

Average Variable Costs (AVC)

9

______ ____ ____ are the summation of AFC and AVC.

Average Total costs (ATC)

10

All firms have _____ inputs in the short run.

Fixed

11

To produce _____, firms have to combine fixed and variable inputs, as the graphic on the left indicates.

output

12

as output approaches infinity, AFC approaches ___?

0

13

See Graph for Vertical Summation

AFC and AVC

14

The ___ curve lies above the other two because it is the summation of AFC and AVC.

ATC