Costs

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Across
  1. 3. A line that connects the costminimizing input combinations as the quantity of output, Q, varies, holding input prices constant
  2. 5. The problem of finding the input combination that minimizes a firm’s total cost of producing a particular level of output
  3. 8. A curve that shows how total cost varies with output, holding input prices fixed and choosing all inputs to minimize cost
  4. 12. Costs that involve a direct monetary outlay
  5. 15. Total variable cost per unit of output
  6. 21. The cost of producing a good in a single-product firm
  7. 22. The sum of expenditures on variable inputs, such as labor and materials, at the short-run cost-minimizing input combination
  8. 23. A characteristic of production in which average cost decreases as output goes up
  9. 25. Total fixed cost per unit of output
  10. 26. Costs that are incurred only if a particular decision is made
  11. 28. A curve that shows the cost of fixed inputs and does not vary with output
  12. 29. The firm’s total cost per unit of output. It equals long-run total cost divided by total quantity
  13. 30. The percentage change in total cost per 1 percent change in output
  14. 31. The firm’s total cost per unit of output when it has one or more fixed inputs
  15. 32. A mathematical relationship that shows how total costs vary with the factors that influence total costs, including the quantity of output and the prices of inputs
  16. 33. The rate at which long-run total cost changes with respect to change in output
Down
  1. 1. Cost advantages that result from accumulated experience, or as it is sometimes called, learningby-doing
  2. 2. The value of the next best alternative that is forgone when another alternative is chosen
  3. 4. The cost of fixed inputs; it does not vary with output
  4. 6. Costs that do not involve outlays of cash
  5. 7. The slope of the short-run total cost curve
  6. 9. An input whose cost-minimizing quantity increases as the firm produces more output
  7. 10. Costs that have already been incurred and cannot be recovered
  8. 11. The smallest quantity at which the long-run average cost curve attains its minimum point
  9. 13. A characteristic of production in which average cost increases as output goes up
  10. 14. A situation in which a given percentage increase in output forces the firm to increase its spending on the services of managers by more than this percentage
  11. 16. A curve that shows the sum of expenditures on variable inputs, such as labor and materials, at the short-run cost-minimizing input combination
  12. 17. A curve that shows the minimized total cost of producing a given quantity of output when at least one input is fixed
  13. 18. A cost function that specifies constant elasticities of total cost with respect to output and input prices
  14. 19. The set of combinations of labor and capital that yield the same total cost for the firm
  15. 20. A production characteristic in which the total cost of producing given quantities of two goods in the same firm is less than the total cost of producing those quantities in two singleproduct firms
  16. 24. An input that is available only in a certain minimum size. Its quantity cannot be scaled down as the firm’s output goes to zero
  17. 27. An input whose costminimizing quantity decreases as the firm produces more output