Exam 4: Managing Costs

A profit is made when

Economies of scale occur when total costs fall when output increase

The short run in economics is less than 5 years

The shut-down point occurs when

If marginal product is greater than average product then average product will fall.

The extra output from employing another unit of a variable factor is known as the ________ product. Is it "total"? "marginal"? "average"?

If marginal cost is greater than average cost then average costs fall.

Fixed costs never change.

The total costs are made up of fixed costs plus _________ costs

Labour productivity measures ___________ per employee

The difference between revenue and variable costs is a _____________ to fixed costs

The marginal cost curve cuts the average cost at its minimum point.

Natural monopolies occur when there are very high diseconomies of scale

The level of output at which revenue equals total costs is known as the _______-______ output