Micro Key Terms - Theory of the Firm 2.0 / 5 based on 1 rating ? ElectronicsA2/A-levelAQA Created by: Charlie RobertsonCreated on: 03-04-13 11:42 Short Run The period of time in which at least one of the factors of production is fixed. 1 of 10 Long Run The period of time in which all the factors of production are variable. 2 of 10 Short Run Total Product Shows how the quantity of output that a firm produces depends on the quantity of a variable input. 3 of 10 Marginal Product Additional quantity of output that is produced by using one more unit of that input. 4 of 10 Average Product Average quantity of output that is produced by using one unit of that input. 5 of 10 Marginal Cost The additional total cost a firm has to pay to produce an extra unit of output. 6 of 10 Average Cost Average total cost a firm has to pay to produce each of its units of output. 7 of 10 Total Revenue Total income earned by a producer from selling its good/ service to consumers. 8 of 10 Average Revenue The amount of income that a producer receives from selling each of unit of its good/ service. 9 of 10 Marginal Revenue The additional income that a producer earns from selling an extra unit of its good/ service. 10 of 10
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