Identification 1-15 and True or False 1-10. Answer all the question. Thank you i will rate this as helpful. 36. 46 17:08 O O &E Exercis..No. 5 - SavedExercise No. 5 Production and CostsName:Course & Section:IDENTIFICATIONMarginal cost1. The additional cost from an additional unit ofoutput produced.Production function2. It shows the relationship between the level ofinputs and output.3. The difference between ATC and AVC in the short-run period.4. Cost that exists only in the very short run orimmediate period.5. Cost that decreases with the increases in the outputproduced.6. A monetary expenditure made to outsiders whosupply the inputs.7. Inputs that do not vary with the level of output.8. Variable cost per unit of output.9. It states that as you combine the fixed inputs to thevariable inputs, total product increases at an increasing rate continuouslydecreasing rate and at a certain point it declines.10. Cost11. The total output produced per unit of a resourcedincrease at aself-owned or self-employed resources.employed.12. Production period where all factors of productionused are variable inputs.Second stage13. The rational stage of production.14. A production stage where the firm is over utilizingits fixed input.15. It is J shaped curve.TRUE OR FALSE1. Land and managerial talent are fixed inputs in the short-run.2. Rent, depreciation and salary of the managers are variable costs inthe short-run.3. Implicit cost of a resource is counted as economic cost due to theopportunity cost of the said resource.4. When TP is maximum, MP is negative.5. In the short-run period, TC=TFC at zero output.In the long-run, ATC = AVC.7. From the economist's point of view, the real importance of cost lies in6.the fact they represent constraints to production.8. For the firm to reduce its fixed cost, it has to produce more output.9. Normal profit is part of the firm's implicit cost.10. In the short-run, the firm's plant capacity or size of the plant is fixed.

Production refers to the process of creating goods or services using various resources such as…

Exercise No. 5 Production and Costs Course & Section: Name: IDENTIFICATION Marginal cost output produced. Production function inputs and output. _1. The additional cost from an additional unit of 2. It shows the relationship between the level of _3. The difference between ATC and AVC in the short- run period. 4. Cost that exists only in the very short run or immediate period. _5. Cost that decreases with the increases in the output produced. 6. A monetary expenditure made to outsiders who supply the inputs. _7. Inputs that do not vary with the level of output. 8. Variable cost per unit of output. _9. It states that as you combine the fixed inputs to the variable inputs, total product increases at an increasing rate continuously increase at a decreasing rate and at a certain point it declines. _10. Cost of self-owned or self-employed resources. _11. The total output produced per unit of a resourced employed. _12. Production period where all factors of production used are variable inputs. Second stage _13. The rational stage of production. _14. A production stage where the firm is over utilizing its fixed input. _15. It is J shaped curve. TRUE OR FALSE _1. Land and managerial talent are fixed inputs in the short-run. 2. Rent, depreciation and salary of the managers are variable costs in the short-run. _3. Implicit cost of a resource is counted as economic cost due to the opportunity cost of the said resource. _4. When TP is maximum, MP is negative. 5. In the short-run period, TC=TFC at zero output. 6. In the long-run, ATC = AVC. _7. From the economist's point of view, the real importance of cost lies in the fact they represent constraints to production. _8. For the firm to reduce its fixed cost, it has to produce more output. _9. Normal profit is part of the firm's implicit cost. _10. In the short-run, the firm's plant capacity or size of the plant is fixed.

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ