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.
accounting cost economic cost opportunity cost economic profit accounting profit fixed cost sunk cost specific capital operating revenue operating cost sunk cost fallacy variable cost total cost cost curve average fixed cost (AFC) average variable cost average total cost marginal cost short- economies of scale diseconomies of scale constant economies of scale economies of scope diseconomies of scope | A firm’s total revenue minus its economic cost. The cost of the firm’s fixed inputs, independent of the quantity of the firm’s output. The sum of a producer’s accounting and opportunity costs. A firm’s fixed cost per unit of output. Total cost rises at the same rate as output rises. The simultaneous production of multiple products at a higher cost than if a firm made each product separately. A firm’s variable cost per unit of output. The value of what a producer gives up by using an input. The money a firm earns from selling its output. The mathematical relationship between a firm’s production costs and its output. The sum of a firm’s fixed and variable costs. The cost a firm incurs in producing its output. The cost of inputs that vary with the quantity of the firm’s output. The mistake of letting sunk costs affect forward- A firm’s total cost per unit of output. A firm’s total revenue minus its accounting cost. The simultaneous production of multiple products at a lower cost than if a firm made each product separately. Total cost rises at a slower rate than output rises. The mathematical representation of a firm’s total cost of producing different quantities of output at a fixed level of capital. A cost that, once paid, the firm cannot recover. Total cost rises at a faster rate than output rises. The cost of producing an additional unit of output. The direct cost of operating a business, including costs for raw materials. Capital that cannot be used outside of its original application. |