Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.

Question

long run short run total revenue total cost explicit cost implicit cost economic profit accounting profit fixed costs variable costs marginal revenue, MR marginal cost, MC average cost zero (normal) profits increasing cost industry constant cost industry decreasing cost industry

A cost that does not require an outlay of money. The time after all exit or entry has occurred. The total cost of producing a given quantity divided by that quantity, AC = TC/Q. Costs that vary with output. An industry in which industry costs do not change with greater output; shown with a flat supply curve. , the change in total cost from producing an additional unit. Price times quantity sold: TR = P × Q. An industry in which the industry costs decrease with an increase in output; shown with a downward sloping supply curve. An industry in which industry costs increase with greater output; shown with an upward sloped supply curve. The condition when P = AC; at this price the firm is covering all of its costs including enough to pay labor and capital their ordinary opportunity costs. Total revenue minus explicit costs (compare with economic profit). The period before exit or entry can occur. Costs that do not vary with output. , the change in total revenue from selling an additional unit. Total revenue minus total costs including implicit costs. Is a cost that requires a money outlay. The cost of producing a given quantity of output.

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