3.1
Can Variable Inputs be reused?
no
Can Fixed Inputs be reused?
yes
The additional cost of producing one more unit of output
marginal cost
Output is increasing at a faster rate than all inputs
increasing return to scale
The way a firm combines inputs to produce an output
production function
When MP is negative, TP is
decreasing
A cost that is the same at all output levels.
fixed cost
Output is increasing at a slower rate than all inputs
decreasing returns to scale
The period of time long enough for a firm to change all of its inputs
long run
short run
A cost that changes as output changes
variable cost
Helps determine the number of firms in a market
minimum efficient scale
Change in Total Product / Change in Labor
marginal product
When MP is zero, TP is at a
maximum
What does Marginal Cost depend on?
marginal product
diseconomies of scale
Total product / Labor
A firm's maximum potential level of production
The average per-unit variable cost of production for a given quantity of output.
Long-run ATC decreases as output increases
economies of scale