Chapter 5 Activity

Fill In The Blank

1) _______________ cost is the value of the best alternative surrendered when a choice is made.

2) _______________ economic profit is considered to be a normal profit.

3) The _______________ run is a period in which at least one input is fixed.

4) The _______________ run is a period in which all inputs can be changed.

5) _______________ _______________ _______________ is the change in output with one additional unit of input.

6) _______________ cost is the change in total cost from producing an additional unit of output.

7) _______________ costs are costs that do NOT vary with output.

8) _______________ costs are costs that vary with output.

Short Answer

1) Explain the difference between an explicit and an implicit cost.

2) Explain the meaning of Zero economic profit.

Complete the following table:

Workers	Total Product	Marginal Physical Product	Wage	Marginal Cost
0	0	-	$180	-
1	36		$180
2	81		$180
3	111		$180
4	131		$180
5	141		$180
6	146		$180
7	148		$180