Term
|
Definition
| all cost of a business that must be paid as well as those incurred in the form of forgone opportunities. |
|
|
Term
|
Definition
| only those cost that must be explicitly paid by the owner of the business. |
|
|
Term
|
Definition
| a graph that shows how many resources are needed to produce various amounts of output |
|
|
Term
|
Definition
| a graph that shows how much various amounts of production have in terms of cost |
|
|
Term
|
Definition
| resources that do not change (need enough wood to start fire) |
|
|
Term
|
Definition
| resources that can be changed |
|
|
Term
|
Definition
| workers divide the tasks in such a way that each can build momentum and not have to switch jobs |
|
|
Term
|
Definition
| the notion that there exists a point where the addition of resources increases production but does so at a decreasing rate |
|
|
Term
|
Definition
| cost of production that cannot be changed |
|
|
Term
|
Definition
| cost of production that can be changed |
|
|
Term
|
Definition
| the addition to cost associated with one additional unit of output |
|
|
Term
|
Definition
| total variable cost divided by output, the average variable cost per unit of production |
|
|
Term
|
Definition
| total fixed cost divided by output, the average fixed cost per unit of production |
|
|
Term
|
Definition
| additional revenue the firm receives from the sale of each unit |
|
|
Term
|
Definition
| a situation in a market where there are many firms producing the same good |
|
|
