The Costs of Production
About the Lecture
The lecture The Costs of Production by James DeNicco is from the course Principles of Microeconomics (EN). It contains the following chapters:
- A Closer Look at Revenue, Cost and Profit
- Economic versus Accounting Profit
- Fixed and Variable Costs
- The U-Shape of the ATC
- Cost Curves for a Typical Firm
- Recap
Included Quiz Questions
Accounts calculate profit as revenue minus ________________, while Economists calculate profit as revenue minus ________________.
- explicit costs ; opportunity costs
- implicit costs ; opportunity costs
- explicit costs ; implicit costs
- opportunity costs ; explicit costs
If a production function displays diminishing marginal returns, then as workers are hired the quantity produced ________________ at a ________________ rate.
- increases ; decreasing
- decreases ; increasing
- increases ; increasing
- decreases ; decreasing
A firm is producing 1,000 units at a total cost of $10,000. If it were to increase production to 1,001 units, its total cost would rise to $10,015. What does this information tell you about the firm at the present time?
- Marginal cost is $15 & average total cost is $10.
- Marginal cost is $10 & average total cost is $15.
- Marginal cost is $15 & average variable cost is $10.
- Marginal cost is $15 & average fixed cost is $10.
Why is the Average Total Cost curve U-shaped?
- At first AFC falls more quickly then AVC rises.
- At first AFC falls more quickly then AVC falls.
- At first AFC rises more quickly then AVC falls.
- At first AFC rises more quickly then AVC rises.
Author of lecture The Costs of Production
James DeNicco
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