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1. Early in the production process, the average variable cost of producing the next unit of a product decreases. During this window, the firm experiences____________.
2. The point of maximum profits for a business occurs when this equation holds true. Write the equation here:___________.
3. Firms may produce at a loss in order to minimize their losses. while the firm my have a loss by marginal revenue being below the average total cost. they still produce because they are above the point on the graph known as the ___________ hint: use the special name.
4. When trying to figure out wages, you need to know this marginal item to ensure you do not under or over pay the employees.______________.
5. To graphically find profits for the firm, you find the point of production and then subtract this from the average revenue point. this is the _________.
6. This mathematical relationship shows how various inputs combine to make an output. this is commonly expressed in the form of an equation. _________.
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