3.1
Inputs that can be changed in the short run to change production
What are variable costs?
The way a firm combines inputs to produce outputs
What is the production function?
The slope of total product is represented by what
What is marginal product?
Cost that changes as output changes
What is variable cost?
Marginal cost decreasing initially is called
What is specialization?
Inputs that can't be changed in the short run to change production
What are fixed costs?
A firms max potential level of production
What is plant capacity?
A negative marginal product shows
What is a decreasing total product?
A cost that must be paid, the cost remains the same at all output levels
What is fixed cost?
Marginal cost eventually rising is called
What are diminishing returns?
The period of time in which there are fixed inputs, and there is too little time to alter plant capacity
What is the short run?
The total quantity of of output produced by a certain amount of inputs
What is total product?
Total product increasing at an increasing rate is shown by what
What is an increasing marginal product?
The additional cost of producing one more unit of output
What is marginal cost?
The average per unit total cost of production for a given quantity of output
What is average total cost?
The additional output produced by one more unit of a variable input
What is marginal product?
ΔTotal Product / ΔLabor
What is the formula for marginal product?
Total product increasing at a decreasing rate is shown what
What is a positive but decreasing marginal product?
ΔTotal cost / ΔQuantity
What is the formula for marginal cost?
The formula for average fixed cost
What is fixed cost divided by quantity?
The average quantity of output produced by one unit of a variable input
What is average product?
Total product / Labor
What is the formula for average product?
Marginal product being greater than average product shows
What is a rising average product?
The average per unit variable cost of production for a given quantity of output
What is average variable cost?
The average per unit fixed cost of production for a given quantity of output
What is average fixed cost?