ECO2023 Chapter Notes - Chapter 11: Average Cost, Fixed Cost, Opportunity Cost

• School: UNF
• Department: Economics
• Course: ECO2023
• Professor: John Slattery

Document Summary

11. 1 technology: an economic definition: technology the processes a firm uses to turn inputs into outputs of goods and services. Depends on skills, training, and efficiency: technological change a change in the ability of a firm to produce a given level of output with a given quantity of inputs. Positive more outputs using same inputs or same outputs with fewer inputs. Come from many sources, training, efficiency, or skills. Some new technology took form of new equipment. Harnessing technological change can allow firms to reduce costs and better compete against other firms in their industry. Total costs the cost of all inputs a firm uses in production. In short run, some inputs are fixed and others are variable. Costs of the fixed inputs are fixed costs. Variable costs costs that change as output changes. Fixed costs costs that remain constant as output changes. Tc = fc+vc: implicit costs versus explicit costs.