Define the short run and the long run. What types of industries are likely characterized by longer short runs? Why?

Explain, verbally and graphically, total fixed costs, average fixed costs, total variable costs, and average variable costs.

Graphically, verbally, and mathematically (with equations) explain the relationships between TC, TVC, TFC, ATC, AVC and AFC.

Suppose a firm produces bicycles. Will the firm's accounting statement reflect the opportunity cost of bicycles? Why or why not?

Explain the factors that cause a firm's short-run average variable costs to decline initially, but to eventually increase as output rises.

What happens to average product when marginal product is greater than average product?

At what point does marginal product start to decrease?

When costs that do not change with the level of output are
divided by the output level, you have calculated
A) total cost.
B) average total cost.
C) average fixed cost.
D) marginal cost.

Marginal cost is defined as
A) total cost divided by quantity.
B) the change in total cost resulting from the production of one
additional unit of output.
C) total variable cost divided by the number of units produced.
D) average fixed cost times the number of units produced.

In the short run, if average variable costs equal $20, average
total costs equal $70, and output equals 100, then the total
fixed cost equals
A) $50.
B) $1,000.
C) $5,000.
D) $9,000.