Term
|
Definition
| input costs that require a monetary payment |
|
|
Term
|
Definition
| do not represent an explicit outlay of money, but they are still real, representing the implicit opportunity costs of alternatives that must be forgone (road not taken) |
|
|
Term
|
Definition
| total revenues minus total explicit costs |
|
|
Term
|
Definition
| total revenues minus explicit AND implicit costs |
|
|
Term
|
Definition
| costs that have already been incurred and cannot be recovered. |
|
|
Term
|
Definition
| too brief for some inputs/resources to be varied |
|
|
Term
|
Definition
| period of time in which the firm can adjust all inputs |
|
|
Term
|
Definition
| total amount of output generated as the level of the variable input/resource increases |
|
|
Term
|
Definition
| any single input/resource is defined as the change in total product resulting from a small change in the amount of that input/resource used |
|
|
Term
| diminishing marginal product |
|
Definition
| stems from the crowding of the fixed input/resource with more and more of the variable input/resource |
|
|
Term
|
Definition
| do not vary with the level of output |
|
|
Term
|
Definition
| sum of the firms fixed costs, same at all levels of output |
|
|
Term
|
Definition
| vary with the level of output |
|
|
Term
|
Definition
total cost divided by the level of output produced.
TC/Q |
|
|
Term
|
Definition
total fixed cost divided by the level of output
TFC/Q |
|
|
Term
|
Definition
show the change in total costs associated with a change in output by one unit, costs of producing one more unit of output
changeTC/changeQ |
|
|
Term
|
Definition
sum of the total fixed and total variable costs.
TC=TFC+TVC |
|
|
Term
| average variable cost (AVC) |
|
Definition
total variable cost per unit of output
TVC/Q |
|
|
Term
|
Definition
| always horizontal b/c fixed costs are the same at all output levels |
|
|
Term
| the average fixed cost curve... |
|
Definition
| constantly declines, approaching but never reaching zero |
|
|
