Chapter 13

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Ruth5151
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19821
Filename:
Chapter 13
Updated:
2010-05-18 20:27:02
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Economics Mankiw
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Description:
A.P. Economics textbook, Chapter 13 vocabulary
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  1. total revenue
    the amount a firm receives for the sale of its output
  2. total cost
    the market value of the inputs a firm uses in production
  3. profit
    total revenue minus total cost
  4. explicit costs
    input costs that require an outlay of money by the firm
  5. implicit costs
    input costs that do not require an outlay of money by the firm
  6. economic profit
    total revenue minus total cost, including both explicit and implicit costs
  7. accounting profit
    total revenue minus total explicit cost
  8. production function
    the relationship between quantity of inputs used to make a good and the quantity of output of that good
  9. marginal product
    the increase in output that arises from an additional unit of input
  10. diminishing marginal product
    the property whereby the marginal product of an input declines as the quantity of the input increases
  11. fixed costs
    costs that do not vary with the quantity of output produced
  12. variable costs
    costs that do vary with the quantity of output produced
  13. average total cost
    total cost divided by the quantity of output
  14. average fixed cost
    fixed costs divided by the quantity of output
  15. average variable cost
    variable costs divided by the quantity of output
  16. marginal cost
    the increase in total cost that arises from an extra unit of production
  17. efficient scale
    the quantity of output that minimizes average total cost
  18. economies of scale
    the property whereby long-run average total cost falls as the quantity of output increases
  19. diseconomies of scale
    the property whereby long-run average total cost rises as the quantity of output increases
  20. constant returns to scale
    the property whereby long-run average total cost stays the same as the quantity of output changes

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