Economy: The Firm

3. Determined by dividing total variable cost by the output
5. Occurs whenever total revenue is less than total cost
6. The size of the production process
7. Occurs when successive increases in inputs are associated with a slower rise of outputs
13. Calculated by subtracting both the explicit and implicit costs from total revenue
16. Inputs used in producing goods and services
17. The change in output associated with one additional unit of input
18. The amount that a firm spends to produce and/or sell goods and services
19. Costs of resources already owned, for which no out-of-pocket payment is made
20. Calculated by subtracting only the explicit costs from total revenue

1. Determined by dividing total fixed cost by the output
2. The relationship between the inputs a firm uses and the output it creates
4. Occurs whenever total revenue is higher than total cost
8. The increase in cost that occurs from producing one additional unit of output
9. Tangible out-of-pocket expenses
10. Do not vary with output in the short run (also known as overhead)
11. The sum of the average variable cost and average fixed cost
12. The product that the firm creates
14. The amount the firm recieves from the sale of goods and services
15. Change with the rate of output