Cost Analysis

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Across
  1. 3. Characteristic of an industry in which any potential entrant has access to the same technology and inputs that existing firms have.
  2. 5. The period of time in which at least one of the firm’s input quantities cannot be changed.
  3. 6. Occur when the percentage increase in the quantity of output is greater than the percentage increase in the quantity of all inputs.
  4. 7. This cost refers to the total cost per unit of output produced.
  5. 10. Refers to a market in which the total cost of producing the industry output for a single firm is lower than the combined total cost incurred by two or more producers if they were to divide the required output equally among themselves.
  6. 12. The value of the next best alternative that is forgone when another alternative is chosen.
  7. 15. Occur when the percentage increase in the quantity of output is below the percentage change in the quantity of all inputs.
  8. 17. This cost refers to the additional cost incurred by producing one more unit of output.
  9. 18. The difference between revenue and fixed costs.
Down
  1. 1. A cost that represents the firm’s expenditures on variable inputs.
  2. 2. A price of goods exchanged between divisions/branches of one large firm.
  3. 4. The costs that have already been incurred and cannot be recovered.
  4. 8. This notion can be attributed to the production process when the cost of producing multiple goods together is lower than the combined cost of producing each product separately.
  5. 9. The lowest output at which the minimum average cost can be achieved. Used to estimate the number of firms in the market.
  6. 11. This cost assumes that all the costs are variable, and the scale of production can be altered. It is determined by returns to scale and serves as a predictor of a firm’s efficiency.
  7. 13. This cost refers to the total expense incurred by a firm in producing a given level of output.
  8. 14. The concept that tells us the percentage by which output will increase when all inputs are increased by a given percentage.
  9. 16. A cost that results from the firm’s expenditures on fixed inputs.