Chapter 23 - Production Technology and Cost

LMC

The long- run marginal cost () is the change in long- run cost resulting from a one- unit increase in output.

MC

A short- run marginal cost () is the change in short- run total cost resulting from a one- unit increase in output.

LMC

The long- run marginal cost () is the change in long- run cost resulting from a one- unit increase in output.

MC

A short- run marginal cost () is the change in short- run total cost resulting from a one- unit increase in output.

Labor specialization

is for small quantities of output, AVC decreases as output increases because increases worker productivity.

total product curve

The is a curve showing the relationship between the quantity of labor and the quantity of output produced.

constant returns

The to scale is a situation in which the long- run total cost increases proportionately with output, so the average cost is constant.

actual monetary payments

A firms explicit cost is its for inputs.

invisible input

The is an input that can not be scaled down to produce a smaller quantity.

Discretionary spending

__ constitutes all the programs that Congress authorizes on an annual basis that are not automatically funded by prior laws which includes defense spending and all nondefense domestic spending.

Entitlement and mandatory

_ spending constitutes all spending that Congress has authorized by prior law.

Social Security

 provides retirement payments to retirees as well as a host of other benefits to widows and families of disabled workers.

Medicare

 provides health care to all individuals once they reach the age of 65.

Medicaid

__ provides health care to the poor, in conjunction with the states.