Chapter 10 - Behind the Supply Curve Profit, Production, and Costs

positive economic profit

A(n) ________ means that the current utilization of resources is the most efficient.

Firms

________ can modify the quantity of any input over a long enough period of time.

normal profit

A company that makes a(n) ________ is considered to be successful.

optimal output rule

The ________ asserts that profit is maximized by generating the amount at which the marginal revenue of the last unit produced equals its marginal cost.

negative economic profit

A(n) ________ shows that resources could be better used in another way.

marginal utility

The term ________ refers to a good or service is the change in total utility generated by consuming one additional unit of that good or service.

Implicit Cost

Benefits forgone in the next best use of the firm's resources

Accounting profit

Profit determined only by the firm's explicit costs.

The Firm's Production Function

Refers to the quantity of output a firm produces depending on the number of inputs.