Term
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Definition
| the amount a firm receives for the sale of its output |
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Term
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Definition
| the market value of the inputs a firm uses in production |
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Term
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Definition
| total revenue minus total cost |
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Term
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Definition
| input costs that require an outlay of money by the firm |
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Term
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Definition
| input costs that do not require an outlay of money by the firm |
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Term
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Definition
| total revenue minus total cost, including both explicit and implicit costs |
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Term
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Definition
| total revenue minus total explicit cost |
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Term
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Definition
| the relationship between quantity of inputs used to make a good and the quantity of output of that good |
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Term
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Definition
| the increase in output that arises from an additional unit of input |
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Term
| diminishing marginal product |
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Definition
| the property whereby the marginal product of an input declines as the quantity of the input increases |
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Term
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Definition
| costs that do not vary with the quantity of output produced |
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Term
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Definition
| costs that vary with the quantity of output produced |
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Term
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Definition
| total cost divided by the quantity of outputav |
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Term
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Definition
| fixed cost divided by the quantity of output |
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Term
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Definition
| variable cost divided by the quantity of output |
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Term
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Definition
| the increase in total cost that arises from the extra unit of production |
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Term
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Definition
| the quantity of output that minimizes average total cost |
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Term
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Definition
| the property whereby long-run average total cost falls as the quantity of output increases |
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Term
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Definition
| the property whereby long-run average total cost rises as the quantity of output increases |
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Term
| constant returns to scale |
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Definition
| the property whereby long-run average total cost stays the same as the quantity of output changes |
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