Term
| Constant returns to scale |
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Definition
| Where long-run average total costs do not change with an increase in output. |
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Definition
| A measure of the decline in value of an asset that occurs over time. |
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| When a long-run average total costs increase as ouput increases |
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Definition
| The method that produces a given level of output at the lowest possible cost. |
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Definition
| When the costs of producing products are interdependent so that it's less costly for a firm to produce one good whne it's already producing another. |
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Definition
| An individual who sees an opportunity to sell an item at a higher price than the average cost of producing. |
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Definition
| The cost of indivisible input for which a certain minimum amount of production must be undertaken before the input becomes economically feasible |
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Definition
| As we do something, we learn what works and what doesn't, and over time we become proficient at it. |
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Term
| Minimum efficient level of production |
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Definition
| Amount of production that spreads setup costs out sufficiently for a firm to undertake production profitably |
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Definition
| Costs incurred by the organizer of production in seeing to it that the employees do what they're supposed to do. |
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Definition
| The feelings of friendship and being part of a team that bring out people's best efforts |
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Definition
| As few inputs as possible tare used to produce a given output |
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Definition
| An increase in the range of production techniques that lead to more efficient ways of producing goods as well as the production of new and better goods. |
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