chapter 7.txt

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chapter 7.txt
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2011-06-28 03:47:57
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chapter micro economics mark doronio
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chapter 7 micro
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  1. inputs
    resources that go into production
  2. outputs
    the results of production
  3. waste products
    outputs that are not used either for consumption or in a further production process
  4. final goods
    goods that are ready for the use by people
  5. accounting costs
    the costs of a project, figured in terms of monetary outflows alone
  6. economic costs
    coss of a project, including opportunity costs
  7. internal costs
    the costs of a project, from the perspective of the economic actors making the decisions
  8. external costs
    the costs of a project that are borne by persons, or entities such as the environment, that are not among the economic actors directly responsible for the activity
  9. technically efficient
    the quality of a production process if no other process exists that can produce the same output with smaller quantities of some inputs and no more other inputs
  10. social costs of production
    the costs of a project, both those borne by the economic actors involved and those borne by other, figured in terms of opportunity costs
  11. false economics
    costs savings that are illusory because long-term and/or social costs have not been taken into account
  12. production function
    an equation or graph that represents a mathematical relationship between types and quantities of inputs and the quantity of outputs. Y=f(natural cap, manufactured cap, human cap, social cap). Y = f(fixed input, varibale input)
  13. fixed input
    an input to production that is fixed in quantity, no matter what the level of production
  14. variable input
    an input to production that quantity of which can be quickly changed, resulting in changes in the level of production
  15. short run
    a time period in which at least one input to production cannot be varied in quantity
  16. limiting factor
    the fixed input that creats a capacity constraint
  17. capacity constraint
    a case in which some fixed input limis the amount that can be produced in a given preiod of time
  18. long run
    a time period in which all inputs to production can be varied in quantity
  19. total production curve
    a curve showing the total amount of output that can be produced when the quantity of one input is varied
  20. marginal return
    the additional quantity of output gained by using an additional unit of a variable input
  21. diminishing marginal returns
    the case where the use of an additional unit of variable input produces a lesser additional quantity of output than did the previous unit of the input
  22. Constant marginal returns
    the case where the use of additional unit of a variable input produces the same quantity of additional output as did the previous unit of the input
  23. increasing marginal returns
    the case where the use of additional unit of a variable input produces a greater quanitity of additional output than did the previous unit of the input
  24. fixed cost
    the cost associated with using fixed inputs, which is the same no matter what quantity of output is produced
  25. variable cost
    the cost associated with using variable inputs, which rises with the qquantity of output
  26. total cost
    the sum of fixed cost and variable cost
  27. total cost curve
    a curve showing the total cost associated with producing various levels of output
  28. marginal cost
    the cost associated with producing the last unit of output
  29. increasing marginal costs
    the case where the cost of producing an additional unit of output rises as more output is produced
  30. constant marginal costs
    case where the cost of producing an additional unit of output stays the same as more output is produced
  31. decreasing marginal costs
    the case where the cost of producing an additional unit of output falls more output is produced
  32. average cost
    cost per unit of output, computed as total cost divided by the quantity of output produced
  33. long run average cost
    the cost of production, perunit of output when all inputs can be varied in quantity
  34. economies of scale
    these occur when the long run average cost of production falls as the size of the enterprise increases
  35. constant returns to scale
    these occur when the long run average cost of production stays the same as the size of the enterprise increases
  36. diseconomies of scales
    these occur when the long run average cost of production rises as the size of the enterprise increases
  37. minimum efficient scale
    the smallest size an enterprise can be and still benefit from low long run average costs
  38. maximum efficient scale
    the largest size an enterprise can be and still benefit from low long run average costs
  39. input substitution
    • increasing the use of some inputs, and decreasing that of others, while producing the samegood or service
    • the case where the cost of producing an additional unit of output rises as more output is produced

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