Terms : Hide Images
| 9685147009 | Revenue | Price x Quantity | 0 | |
| 9685156593 | Accounting Profit | Total revenue - explicit costs | 1 | |
| 9685161496 | Economic Profit | total revenue- explicit + implicit costs | 2 | |
| 9685174353 | Normal Profit | zero economic profit, break even | 3 | |
| 9685186435 | Profit Maximizing Rule | MR=MC | 4 | |
| 9685193251 | Total Profit | Total revenue - total cost | 5 | |
| 9685205376 | Total physical product | total output or quantity produced | 6 | |
| 9685210882 | Marginal Product | the additional output generated by additional inputs | 7 | |
| 9685215038 | Average Product | the output per unit of input total product/ units of input | 8 | |
| 9685222953 | Marginal Revenue | the change in total revenue generated by an additional unit of output | 9 | |
| 9685233824 | Marginal Cost | the change in total cost generated by producing and additional unit | 10 | |
| 9685252559 | Fixed Resource | any input that doe not change with the quantity produced | 11 | |
| 9685258100 | Variable Resources | inputs that change with the quantity produced | 12 | |
| 9685269388 | The law of diminishing marginal returns | as variable inputs are added to a fixed resource the additional output produced from each input will eventually fall | 13 | |
| 9685284050 | Increasing marginal returns | stage 1, marginal product and total product are both increasing | 14 | |
| 9685288272 | Diminishing marginal returns | stage 2, total product is increasing but at a slower rate, marginal product beings to decrease | 15 | |
| 9685301580 | Negative marginal returns | stage 3, total product is decreasing and marginal product is negative | 16 | |
| 9685321148 | Long run | time period in which all inputs can be variable | 17 | |
| 9685324048 | Short run | time period in which at least one input is fixed | 18 | |
| 9685332312 | Firm earning a profit | TR > TC | 19 | |
| 9685335730 | Firm breaking even | TR = TC | 20 | |
| 9685340032 | Firm incurring a loss | TR < TC | 21 | |
| 9685346557 | Fixed Costs | costs that are not affected by the quantity produced | 22 | |
| 9685350236 | Variable Costs | costs that change as more or less is produced | 23 | |
| 9685360449 | Average Fixed Cost (AFC) | =fixed cost/ quantity | 24 | |
| 9685369570 | Average Variable Cost (AVC) | =variable cost/ quantity | 25 | |
| 9685372420 | Total Cost | sum of fixed costs and variable costs | 26 | |
| 9685382587 | Average Total Cost (ATC) | = total cost/ quantity | 27 | |
| 9685406778 | Economies of scale | long run ATC decreases as output increases | 28 | |
| 9685413716 | Minimum cost output | the quantity at which ATC is lowest. Where MC intersects with the ATC curve | 29 | |
| 9685443884 | Constant return to scale | The long run ATC is at its lowest. Output increases directly in proportion to an increase in inputs | 30 | |
| 9685471619 | Diseconomies of Scale | Long run ATC increases as output increases | 31 | |
| 9685496447 | Characteristics of Perfect Competition | many firms identical products low barriers to entry price takers | 32 | |
| 9685510932 | Barriers to Entry | any obstacle to a firm attempting to enter the market | 33 | |
| 9685517804 | Types of barriers to entry | economies of scale superior technology Geography Resource ownership government created | 34 | |
| 9685536828 | Price taker | an individual firm has no control over the price in the market. Price is set by equilibrium | 35 | |
| 9685553616 | Shut Down Rule | a firm will stop producing when the price in the market falls below their minimum AVC | 36 | |
| 9685573384 | Per Unit | tax or subsidy that only affects VARIABLE COSTS | 37 | |
| 9685576626 | Lump Sum | tax or subsidy that only affects FIXED COSTS | 38 | |
| 9685594166 | PC in long run equilibrium | Price= MC = Minimum ATC | 39 | |
| 9685602510 | Constant Cost Industry | new firms entering the market DO NOT increase the costs for the firms already in the market | 40 | |
| 9685618760 | Productive Efficiency | Producing at the lowest possible cost Where price= minimum ATC | 41 | |
| 9685624177 | Allocative Efficiency | producing the amount desired by society Where price = MC | 42 |
