Term
|
Definition
| Equals fixed cost divided by quantity produced. AFC=FC/Q |
|
|
Term
|
Definition
| Output per worker. Total Product/Number of Workers. |
|
|
Term
|
Definition
| Total Cost divided by quantity produced. TC/Q. |
|
|
Term
|
Definition
| Variable Cost divide by quantity produced. VC/Q |
|
|
Term
|
Definition
| (Explicit and Implicit Revenue)-(Explicit and Implicit Cost) |
|
|
Term
|
Definition
| An economic institution that transforms factors of production into goods and services. |
|
|
Term
|
Definition
| Costs that are spent and cannot be changed in the period of time under consideration. |
|
|
Term
| Law of diminishing marginal productivity |
|
Definition
| As more and more of a variable input is added to an existing fixed input, eventually the additional output one gets from that additional input is going to fall. |
|
|
Term
|
Definition
| A firm chooses among all possible production techniques |
|
|
Term
|
Definition
| The increase(decrease) in total cost from increasing(decreasing) the level of output by one. |
|
|
Term
|
Definition
| The additional output that will be forthcoming from an additional worker, other inputs constant. |
|
|
Term
|
Definition
| Transformation of factors into goods and services |
|
|
Term
|
Definition
| The relationship between the inputs (factors of production) and outputs. |
|
|
Term
|
Definition
| A table showing the output resulting from various combination of factors of production or inputs. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The firm constrained in regard to what production decisions can make |
|
|
Term
|
Definition
| Explicit payments to the factory of production plus the opportunity cost of the factors provided by the owners of the firm. |
|
|
Term
|
Definition
| Amount a firm receives for selling its product or service plus any increase in the value of assets owned by the firm |
|
|
Term
|
Definition
| Costs that change as output changes |
|
|
