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Details Title: Econ 002 - Output and costs Description: Law of Diminishing Returns Total Flash Cards: 10 Created: 05/06/2007 16:16:31	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Q labor Definition The number of workers hired by the company Term TP - Total Product Definition the output of the business Term MPL - Marginal Product of Labor Definition The extra output associated with hiring one more worker. Term TR - Total Revenue Definition price * output Term FC - Fixed Cost Definition The costs of operating the business that are unavoidable Term VC - Variable Cost Definition The additional cost (beyond the fixed cost) of trying to produce output. EX. labor Term TC - Total Cost Definition FC + VC Term MC/wkr - Marginal Cost Definition The extra cost of hiring one additional worker Term Profit Definition TR - TC Term MR/wkr - Marginal Revenue Definition The extra output the business is able to produce by hiring one additional worker.