EC3- ECONOMICS

HideShow resource information
Define average product
Total output/Units of input
1 of 15
Define marginal product
The extra amount added to the total output when another input (worker) is employed
2 of 15
Define total product
The sum of all the output produced in a given time period
3 of 15
Define average costs
Total cost of producing x units/x
4 of 15
Define marginal costs
The extra amount needed to produce the next unit
5 of 15
Define fixed costs
Costs that stay the same despite the level of output e.g. rent, salaries
6 of 15
Define variable costs
Costs that vary which the level of output of a firm e.g. raw material, wages, transport, electricity
7 of 15
Define total costs
Fixed cost+ Variable cost
8 of 15
Define total revenue
The sum amount of money received from a firm’s sales in a given time period
9 of 15
Define average revenue
Total revenue/ Quantity sold
10 of 15
Define marginal revenue
The extra revenue received when another unit if output is sold
11 of 15
Define normal profit
Occurs when total revenue= total cost
12 of 15
Define abnormal profit
Occurs when total revenue is greater than total cost
13 of 15
Define short run
When at least one factor of production is fixed e.g. land, labour and capital
14 of 15
Define long run
When all factors of production can increase
15 of 15

Other cards in this set

Card 2

Front

Define marginal product

Back

The extra amount added to the total output when another input (worker) is employed

Card 3

Front

Define total product

Back

Preview of the front of card 3

Card 4

Front

Define average costs

Back

Preview of the front of card 4

Card 5

Front

Define marginal costs

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all The company, revenue and costs resources »