question
Average Fixed Costs
answer
The fixed cost per unit of output
question
Average Product
answer
Total product divided by the total units of capital or labor
question
Average Total Cost
answer
The total cost divided by the total quantity of output
question
Average Variable Cost
answer
The variable cost per unit of output
question
Diminishing Marginal Return
answer
The proposition that states that as more of any variable input is added to some fixed input (like a plot of land), the less of output can be obtained from that variable input.
question
Diseconomies of Scale
answer
Increases in costs stemming from a company becoming too
question
Economies of Scale
answer
Cost savings associated with large scale production
question
Inflection
answer
The point in a curve where the rate of change in the slope begins to change
question
Marginal Cost
answer
The additional, or incremental cost incurred from any activity, or action.
question
Marginal Product
answer
The additional output gained from employing one more unit of some input (same as the marginal physical product)
question
Negative Returns
answer
Losses incurred from some investment.
question
Output
answer
Total production.
question
Total Cost
answer
Fixed costs + Variable costs
question
Total Fixed Cost
answer
The total cost of inputs that are fixed in the production process (do not change in the short run).
question
Total Product Curve
answer
A curve that graphically illustrates all levels of production (price/quantity) of a given good or service
question
Total Variable Cost
answer
The total cost of inputs that are variable (can change in value).
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
