Term
| Diminishing Marginal Returns |
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Definition
| When firm increase output without being able to increase all resources- law of physics |
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Term
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Definition
| Cost per unit of output total cost/Quantity of Output |
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Term
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Definition
Is the change in cost caused by a change in output..= change in TC
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Change in Q output |
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Term
| Marginal Product of labor |
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Definition
| MC=W/MP---MArginal cost = wage/Marginal Price or the additiontional additional cost of a unit of labor = W |
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Term
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Definition
| Costs that must be applied whether or not a firm produces any output |
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Term
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Definition
| The costs that rise and fall with production |
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Term
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Definition
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Term
| The Law of diminishing Marginal returns |
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Definition
| Relationship between Costs and output in the Short Run --- eventually the MR will fall |
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Term
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Definition
| The Ration of Fixed costs to Variable Costs |
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Term
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Definition
| Short run multipl short run on graph |
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Term
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Definition
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Term
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Definition
| This is the average of all the short run Costs. in a Marita Sony |
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Term
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Definition
| When an output doubles and its cost per unit of output decreases |
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Term
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Definition
Size of firm is doubled and we have an output increase by less than double
NOT THE LEARNING CURVE |
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Term
| Constant returns of Scale |
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Definition
| Cost per unit of output is constant, as output rise all resources are variable. |
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Term
| Large Scale not always best |
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Definition
| Efficiency and and Specialization are limited by the sixe of the market |
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Term
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Definition
When a firm has a product advantage from producing one more unit.
NO THE LEARNING CURVE |
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