CHALLENGE Match the Key phrases (A-J) with their Definitions (1-10) Marginal cost B Average fixed cost C Average revenue D Long run E Producer surplus F Short run G Total Cost H Economies of scale I Abnormal profit J Returns to scale 1 The change in total costs from increasing output by one extra unit 2 In the long run, all factors of production are variable. 3 Profit in excess of normal profit 4 TFC/Q 5 The difference between what producers are willing and able to supply a good and the price they receive 6 Falling long run average cost as output increases 7 TFC + TVC 8 A time period where at least one factor of production is in fixed supply 9 TR/Q 10 A period of time when all factors of production are variable CHALLENGE Match the Key phrases (A-J) with their Definitions (1-10) Costs and Revenues

CHALLENGE A B C D E F G H I J Marginal cost The change in total costs from increasing output by one extra unit 1 B Average fixed cost TFC/Q 4 C Average revenue TR/Q 9 D Long run A period of time when all factors of production are variable 10 E Producer surplus The difference between what producers are willing and able to supply a good and the price they receive 5 F Short run A time period where at least one factor of production is in fixed supply 8 G Total Cost TFC + TVC 7 H Economies of scale Falling long run average cost as output increases 6 I Abnormal profit Profit in excess of normal profit 3 J Returns to scale In the long run, all factors of production are variable. 2