constant costs increasing returns to scale constant returns to scale isocost cur
ID: 2495501 • Letter: C
Question
constant costs
increasing returns to scale
constant returns to scale
isocost curve
decreasing returns to scale
isoquant
diseconomies of scale
long-run average cost
economies of scale
long-run marginal cost
economies of scope
marginal rate of technical substitution
expansion path
short-run expansion path
___A curve that displays all the various combinations of inputs that will produce a given amount of output.
___The rate at which one input is substituted for another along an isoquant.
___Line that shows all the possible combinations of inputs that can be purchased for a given total cost.
___A curve showing all of the cost-minimizing levels of input usage for various levels of output.
___When the usage of all inputs is increased by an equal proportionate amount, output ___increases by exactly the same proportion.
___When the usage of all inputs is increased by an equal proportionate amount, output increases by a larger proportionate amount.
___When the usage of all inputs is increased by an equal proportionate amount, output increases by a smaller proportionate amount.
___Cost per unit in the long run.
___The change in long-run total cost per unit change in output.
___When long-run average cost falls as output increases.
___When long-run average cost increases with increases in output.
___Long-run average and marginal costs are equal for all levels of output.
___The situation in which the joint cost of producing two goods is less than the sum of the separate costs of producing the two goods.
___Horizontal line showing the cost-minimizing input combinations for various output levels when capital is fixed in the short run.
Explanation / Answer
isoquant-A curve that displays all the various combinations of inputs that will produce a given amount of output.
marginal rate of technical substitution The rate at which one input is substituted for another along an isoquant.
isocost curve-Line that shows all the possible combinations of inputs that can be purchased for a given total cost.
expansion path-A curve showing all of the cost-minimizing levels of input usage for various levels of output.
constant returns to scale - When the usage of all inputs is increased by an equal proportionate amount, output increases by exactly the same proportion.
increasing returns to scale- When the usage of all inputs is increased by an equal proportionate amount, output increases by a larger proportionate amount.
decreasing returns to scale-When the usage of all inputs is increased by an equal proportionate amount, output increases by a smaller proportionate amount.
long-run average cost -Cost per unit in the long run.
long-run marginal cost-The change in long-run total cost per unit change in output.
economies of scale-When long-run average cost falls as output increases.
diseconomies of scale-When long-run average cost increases with increases in output.
constant costs-Long-run average and marginal costs are equal for all levels of output.
economies of scope -The situation in which the joint cost of producing two goods is less than the sum of the separate costs of producing the two goods.
short-run expansion path-Horizontal line showing the cost-minimizing input combinations for various output levels when capital is fixed in the short run.
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