ECON 101 Final: Final Exam - Fall 2017
Document Summary
What is the addition to adding one more unit of labor. What is the addition of adding one more unit of capital. Total revenue - [explicit costs + implicit costs] That owner could sell their business for ,000 and invest $ and earn a year. Econ = 40,000 - [35,000 +1,000] Tc = total cost = fc + vc. Average variable cost = vc/q = $/unit of output. Average fixed cost = vc/q + fc/q = avc + afc. Marginal cost = tc/ q = $/unit of output. Is the addition to total cost from producing one more unit of output. Mu = tu from consuming an addition unit of good. Mc = total cost from producing one more unit of output. Avc: goes down as q goes up. Double all inputs less than double outputs. Disadvantage to getting bigger is larger scale of operations increases cost. Double all inputs double all outputs.
