Chapter 23 - Production Technology and Cost

LMC

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.