EC3- ECONOMICS 2.0 / 5 based on 1 rating ? EconomicsThe company, revenue and costsA2/A-levelWJEC Created by: NaanaCreated on: 16-02-16 11:01 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
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