Term
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Definition
| the ratio of the percentage change in quantity demanded to the percentage change in income |
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Definition
| ratio of the percentage change in quantity demanded to the percentage change in price that brings about the change in quantity demanded |
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Definition
| Products that make other goods desirable (mustard and ketchup to hamburgers). |
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Definition
| Goods that makes other goods less valuable (motorcycle to bicycle). |
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Term
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Definition
| A given percentage price change leads to a larger percentage change in quantity demanded |
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Term
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Definition
| A given percentage price change leads to a smaller percentage change in quantity demanded |
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Term
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Definition
| The period in time when firms can vary their prices and quantity of output |
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Definition
| The period in time sufficiently lengthy for the firm to change their production capicity |
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Term
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Definition
| expenses that do not vary with production |
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Term
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Definition
| expenses that change as output levels change |
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Term
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Definition
| the ability of the firm to adjust output on the basis of costs |
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Term
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Definition
| The additional revenue that the producer earns from the increased sales when it uses an additional unit of the input |
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Term
| Marginal physical product |
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Definition
| The increase in total output that results from a one-unit increase in the input quantity, holding the amounts of all other inputs constant |
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Term
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Definition
| sum of fixed and variable costs |
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Term
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Definition
| the change in total costs as output changes (this is the same as variable costs) |
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Term
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Definition
| occurs where Marginal Revenues = Marginal costs |
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Term
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Definition
| The total amount of money, a firm receives from the purchasers of it products, without any deduction of costs |
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Term
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Definition
| Total Revenues – Total Costs |
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Term
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Definition
| Total Revenues – Total Explicit and Implicit Costs |
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