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CHAPTER 23

PRODUCTION AND COSTS

1. Key terms – matching and translation.

Read aloud the key term and its definition so that they make up a single sentence. (Remember about the agreement between the subject and the predicate!). Translate the sentences you have arrived at from English into Russian.

Set 1

1.marginal cost (MC) a)A type of fixed cost.
2.sunk costs b)TFC + TVC
3.Average fixed cost (AFC) c)Increases at an increasing rate, increases at a decreasing rate, and may even decline.
4.production function d)All resources and costs are variable.
5.average physical product(APPL) e)Costs incurred only when production occurs
6.fixed costs (FC) f)The extra cost of an added unit of output.
7.short run g)Relationship between inputs and outputs.
8.total variable cost (TVC) h)At least one factor or cost cannot be altered.
9.average variable cost i)Output per additional worker.
10.long run j)Costs incurred regardless of the level of output.
11.marginal physical product (MPPL) k)Per unit cost of production.
12.average total cost (ATC) l)Declines continuously as output rises.
13.total product curve m)Per unit costs excluding “overhead”.
14.total costs n)Output per worker.

 

Set 2

1.law of diminishing marginal returns a)LRAC falls as output grows.
2.minimum efficient scale (MES) b)A synonym for fixed cost.
3.equal marginal productivities per dollar c)An “envelope” curve tangent to the SRAC per dollar for each output level.
4.overhead costs d)LRAC rises as output grows.
5.long run average cost (LRAC) curve e)Occurs when the principle of equal marginal productivities per dollar is met.
6.operating costs f)Increases output with a given set of resources.
7.diseconomies of scale g)Also known as variable cost or direct cost.
8.least cost production h)MPPL/w = MPPK/i = …
9.technological change i) Additions of variable inputs to some fixed factor of production ultimately yield less and less additional output.
10.economies of scale. j)Plants that are the smallest that will produce output at minimum average total cost.

Text translation.

Translate the text from English into Russian in writing paying particular attention to the translation of the economic terms in bold as well as words and phrases relevant to the subject of the text. Read out your translation in class andintroduce the necessary corrections.


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