Term
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Definition
| The payment that must be made to obtain and retain the services of a resource |
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Term
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Definition
The montary payment a firm will make to those it must purchase resources that it does not own.
(Cash transactions)
Ex.Payment of workers, Lease of Building, Utilities |
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Term
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Definition
The opportunity cost of using the resources that it already owns.
Ex. Forgone Interest, potential a earnings as a worker, value of entrepreneurial ability |
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Term
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Definition
| = explicit cost + implicit cost |
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Term
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Definition
| Explicit Cost - Sales Revenue |
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Term
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Definition
| Explicit Cost - the accounting profit |
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Term
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Definition
| The total quantity or total output of a particular good or service produced |
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Term
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Definition
| The extra output or added product assiciated with adding a unit of a resource |
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Term
| When Total Product is diminishing, marginal product is? |
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Definition
A. Negative
B. Constant
C. Positive but increasing
D. Positive but declining |
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Term
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Definition
The extra cost of producing one more unit of output.
Ex. Change in Total Cost/ Quantity |
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