Exam 11: The Cost of Doing Business

According to _____, marginal cost increases as output rises.

(Figure: Long-Run and Short-Run Average Total Cost Curves) In the figure, which level of output represents diseconomies of scale?

_____ profit entails a normal accounting profit.

The _____ total cost curve is the lowest cost per unit at which a business can produce various levels of output when all inputs are allowed to vary.

(Figure: MPP L) In the figure, what is the total physical product of two workers?

Wayne, a small business owner, had production expenses last year of $40,000. Revenues were $100,000. Wayne gave up a job that paid $60,000 to open his business. Wayne earned:

Average _____ cost is variable costs per unit.