description of basic economic terms, in some cases what the curves look like. (Made specifically for me, some descriptions of curves may seem weird to you)
Terms : Hide Images
| 37286702 | Fixed Cost | a cost that does not change, no matter how much of a good is produced; a horizontal line | |
| 37286703 | Variable Cost | expenses that change with the number of products produced; Curve: starts low then raises | |
| 37286704 | Total Cost | The market value of the inputs a firm uses in production; total expenses per unit; Curve: above fixed and variable costs | |
| 37286705 | Average Fixed Cost | total fixed costs divided by the number of units produced. It is the only cost that decreases with production; FC/Q; Curve: Starts up high then downslopes sharply | |
| 37286706 | Average Variable Cost | variable costs divided by the quantity of output; TVC/Q; Curve: Closes the smiley face | |
| 37286707 | Average Total Cost | total cost divided by the quantity of output; TTC/Q; Curve: Looks like a smiley face | |
| 37286708 | Marginal Cost | the cost of producing one more unit of a good; cost of extra unit minus the previous cost of extra unit; Curve: Nike Swish | |
| 37286709 | Average Product | total output divided by total units of the variable factor of production; TP/Q; Curve: Increases, the gradually starts to decrease | |
| 37286710 | Marginal Product | The increase in output that arises from an additional unit of input; TMP/Q; Curve: Increases then gradually starts to decrease | |
| 37286711 | Increasing Marginal Returns | a level of production in which the marginal product of labor increases as the number of workers increases | |
| 37286712 | Diminishing Marginal Returns | a level of production in which the marginal product of labor decreases as the number of workers increases | |
| 37286713 | Negative Marginal Returns | adding too many workers therefore decreasing output | |
| 37286714 | Explicit Cost | a cost that involves spending money; costs you can see | |
| 37286715 | Implicit Cost | what you have given up-not out of pocket; costs you don't necessarily see | |
| 37286716 | Accounting Profit | the difference between a firm's total revenue and its explicit costs | |
| 37286717 | Economic Profit | the difference between the money you obtain from selling a product and the cost of producing the product |
