Cycle 3 Vocab Quiz

3. cost that has already been incurred and is nonrecoverable.
5. an industry controlled by the only producer of a good that has no close substitutes
8. fraction of the total industry output accounted for by that firm's output
9. long-run average total cost declines as output increases
13. total cost divided by quantity of output produced
14. cost that depends on the quantity of output produced.
15. something that prevents other firms from entering the industry
16. business' total revenue minus the opportunity cost of its resources. It is usually less than the account profit
17. profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost

1. gives the creator of a literary or artistic work the sole right to profit from that work
2. long-run average total cost increases as output increases
4. industry with only a small number of firms
6. economies of scale provide a large cost advantage to a single firm that produces all of an industry's output
7. relationship between the quantity of inputs a firm uses and the quantity of output it produces
10. change in total revenue generated by an additional unit of output
11. does not require an outlay of money; it is measured by the value, in dollar terms, of benefits that are foregone
12. gives an inventor a temporary monopoly in the use or sale of an invention