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8 Cards in this Set
- Front
- Back
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Total Product
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Output for an existing plant will vary by the amount of labor employed.
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Marginal Product
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The change in output that results from a change in labor.
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Average Product
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Output per worker is found by dividing total output by the number of workers employed to produce that output.
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Variable Costs
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Costs that vary with output fluctuations including expenses such as labor and material costs.
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Fixed Costs
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Costs that do not change as a firm’s output expands or contracts
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Average Variable Costs
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Equal to total variable cost divided by output.
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Average Total Costs
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Equal to total cost divided by output.
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Marginal Cost
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The change in total costs arising from the production of additional units of output.
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