As output rises unit by unit, costs ____ relatively ____ at first, but then ____ more ____.

At a firm’s profit-maximizing level of output,

If a firm is producing where marginal revenue is less than marginal cost, the firm should increase its level of output to increase profits.

A profit-maximizing firm will produce the level of output such that marginal cost is less than rising marginal revenue.

Average total cost is the

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

When Ford Motor Company reports that it earned a loss of $100 million for the fourth quarter of 2007, the firm is

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