ECON 2113 Study Guide - Final Guide: Average Variable Cost, Average Cost, Marginal Revenue

113 views3 pages
11 Dec 2017
School
Department
Course
Professor

Document Summary

Economic profit is the difference between total monetary revenue and total costs (including explicit/implicit costs, opportunity costs) and is therefore lower than accounting profit. Accounting profit is the difference between total monetary revenue and total cost (explicit costs); this is the bookkeeping profit. A mathematical function that relates the maximum amount of output that can be obtained from a given number of inputs, generally capital and labor. Fall in the amount of output produced as one input increases but others remain constant. A firm"s costs of production includes fixed and variable costs. Fixed costs include things like rent, buildings, and equipment. Variable costs include input costs like wages, materials, and utilities . Differentiate between average total, average fixed, average variable, and marginal costs. Average total cost is the total cost divided by the quantity of output. Average fixed cost is fixed cost divided by the quantity of output.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

Related Questions