study session

Question 1

formula for average varible cost (AVC)

Answer 1

TVC/P

Question 2

Formula for average fixed cost (AFC)

Answer 2

TC/Q = TVC/Q+FC/Q

Question 3

fixed inputs

Answer 3

short run

Question 4

variable inputs

Answer 4

long run

Question 5

accounting profit

Answer 5

= revenue - explicit costs

Question 6

economic profit

Answer 6

= accounting profit - implicit costs

Question 7

implicit costs

Answer 7

land, labor, capital, talent (entreprenurialbility normal profit) of entreprenure