A Learning Curve Relates ________ to ________ and Is a Case

question 37

Multiple Choice

A learning curve relates ________ to ________ and is a case of ________ returns.

• A) unit cost; cumulative production; dynamic increasing returns
• B) output per time period; long-run marginal cost; dynamic increasing returns
• C) unit cost; cumulative production; dynamic decreasing returns
• D) output per time period; long-run marginal cost; dynamic decreasing returns
• E) labor productivity; education; increasing marginal returns

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Definitions:

Implicit Costs

Implicit costs refer to the opportunity costs of using resources that a company already owns, without any direct payment, for its own production purposes.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and fluctuating expenses.

Implicit Cost

Represents the opportunity costs of using resources owned by the firm for its own production processes, without direct payment.