Production Definitions
Total quantity of output produced by the variable input.
What is Total Product?
Total Expenditure on all variable inputs.
What is Total Variable Cost?
The curve that intersects Average Variable cost at its minimum
What is Marginal Cost.
The value of Average fixed costs at quantity 10, if average total cost is $34 and Average variable cost is $28.
What is $6 per unit?
The period of time when all resources are variable.
What is the Long Run?
A period of time in the production process during which at least one resource cannot be altered
What is the Short Run?
Total Production cost per unit of output.
What is Average Total Cost?
The vertical distance between Average Variable Cost and Average Total Cost does this as output increases.
What is decreases?
The value of Total fixed costs at quantity 8, if average total cost is $30 and Average variable cost is $25.
What is $40?
Cost per unit of output when all inputs are variable.
What is Long Run Average Variable cost?
The quantity of output per unit of labour.
What is Average Product?
Total Variable cost divided by quantity of output.
What is Average variable cost?
When hiring the quantity of labour where Average Product is minimized, we get the quantity of output where ...
What is Average Variable cost is maximized?
The value of marginal cost if Total cost is $240 at 50 units of output and Total cost is $256 at 52 units of output.
What is $8?
Long Run Average Cost decreases as output increases.
What is Economies of Scale, or increasing returns to scale?
As more of the variable input is added, output increases at a decreasing rate.
What is Diminishing returns?
The cost that does not vary with output
What is Total Fixed Costs?
If the marginal product is less than average product, the average product must be ____
What is decreasing?
The value of Marginal Product given that average product is 20 at 9 units of labour, and average product is 22 at 10 units of labour.
What is 40 units of output?
Long Run Average Cost does not change as output increases.
What is constant returns to scale?
The extra output gained from hiring one more unit of labour.
What is Marginal Product?
The change in Total cost from producing one more unit of output.
What is Marginal cost?
The vertical distance between Average Variable Cost and Average Total cost
What is Average Fixed cost?
The value of Average variable cost if Average product is 10 units of output when the firm is employing 9 units of labour and the wage is $15
What is $1.50 per unit of output?
The smallest level of output that minimizes Long Run Average Total Cost.
What is the minimum efficient scale?