To an economist, total cost is total accounting cost plus opportunity costs not measured in accounting costs.

Opportunity cost is the full value of the next best alternative.

When diminishing marginal returns occurs, the

Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm’s total fixed cost is $600 and its total variable cost is $400. If the price of the product is $8 per unit, the firm should produce

The opportunity cost of going to the movies is the price of entry into the movies.

Figure 5.2Refer to Figure 5.2. If the firm is incurring losses, we can say with certainty that

Oftentimes last minute deals can be found because firms follow the MC = MR Rule.

Table 5.2Table 5.2Quantity of OutputTotal Fixed CostTotal Variable Cost12345678$40$40$40$40$40$40$40$40$  30$  44$  60$  80$110$150$200$280If the firm described in Table 5.2 decided to produce nothing, which of the following would be true?

Table 5.3Table 5.3Total OutputTotal Cost  0  2  4  6  810$100$196$212$310$430$570Refer to Table 5.3. If the production of 2 extra units (units 11 and 12) increases total cost by $162, then the

If adding a seventh worker to the crew in a fast-food restaurant results in fewer additional meals being prepared than when the sixth worker was added, the law of diminishing marginal returns has set in.