Term
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Definition
the study of how firms' decisions about price and quantities depend on the market conditions they face
change in total cost divided by change in quantity |
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Term
| Constant Returns to Scale |
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Definition
| the property whereby long-run average total cost stays the same as the quantity of output changes |
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Term
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Definition
| the property whereby long-run average total cost rises as the of output increases |
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Definition
| the property where the long-run average total cost falls as the quantity of output increases |
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Term
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Definition
| the quantity of output that minimizes average total cost |
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Term
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Definition
| the increase in total cost that arises from an extra unit of production |
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Term
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Definition
| Variable Cost divided by quantity |
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Term
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Definition
| fixed cost divided by quantitiy |
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Term
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Definition
the cost of a typical unit of output
total cost divided by quantity |
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Term
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Definition
| costs that do vary with the quantity of output produced |
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Term
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Definition
| costs that do not vary with the quantity of output produced |
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Term
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Definition
| the relationship between quantity produced and total costs |
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Term
| Diminished Marginal Product |
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Definition
| the property whereby the marginal product of an input declines as the quantity of the input increases |
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Term
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Definition
the increase in output that arises from an additional unit of input
the increase in quantity of output obtained from on additional unit of that input |
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Term
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Definition
the relationship between quantity of inputs use to make a good and the quantity of output of that good
Workers and Cookies
1 50
2 90
3 120 |
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Term
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Definition
total revenue-explicit costs
don't count implicit costs because no money flowing out of the firm |
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Term
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Definition
total revenue - explicit costs - implicit costs
total revenue - total cost |
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Term
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Definition
input costs that do not require an outlay of money by the firm
($$ given up working job to work elsewhere) |
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Term
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Definition
input costs that require an outlay of money by the firm
($$ spent on ingredients or wages) |
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Term
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Definition
the market value of the inputs a firm uses in production
explicit costs + implicit costs |
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Term
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Definition
| the amount a firm receives for the sale of its output |
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Term
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Definition
| total revenue - total cost |
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