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Details Title: Microeconomics Description: Test #2 Total Flash Cards: 12 Created: 02/28/2007 15:25:14	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term implicit cost Definition a firm's opportunity cost of using its own resources or those provided by its owners without a corresponding cash payment Term explicit cost Definition opportunity cost of resources employed by a firm that takes teh form of cash payments Term equation of accounting profit Definition TR-EC Term equation of economic profit Definition TR-EC=AP-IC=EP Term The value of a company's owners time. Implicit or Explicit Definition Implicit Term Electricity cost. Implicit or Explicit Definition Explicit Term True or False Normal profit is teh profit that... Definition True Term short run Definition period in which the problem is fixed Term long run Definition all resources are variable Term marginal cost Definition the change in total cost resulting from a one-unit change in output; the change in total cost divided by the change in output, or MC= Term marginal product Definition the change in total product that occurs when the use of a particular resource increases by one unit, all other resources constant Term True or False When a firm is experiencing dimishing marginal returns marginal cost is falling. Definition False