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14 Cards in this Set
- Front
- Back
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Marginal product of labor
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change in quantity/change in quantity of labor
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fixed input (FI)
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input whose quantity is fixed and cannot be varied
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variable input (VI)
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input whose quantity the firm can vary.
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long run
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time period in which all inputs can be varied
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short run
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time period in which at least one input is fixed
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marginal product (MP)
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additional quantity of output that is produced by using one more unit of that input
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fixed cost (FC)
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a cost that does not depend on the quantity of output produced. it is the cost of the fixed input
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variable cost (VC)
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a cost that depends on the quantity of output produced. it is the cost of variable input.
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total cost (TC)
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sum of the fixed cost and the variable cost of producing the quantity of output.
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total cost curve
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shows how totla cost depends on the quantity of output
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average total cost (ATC)
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total cost divided by quantity of output produced.
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average fixed cost (AFC)
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fixed cost divided by quantity of output
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average variable cost (AVC)
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variable cost divided by quantity of output
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minimum cost output
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quantity that corresponds to the minimum average total cost. bottom of the u-shaped average total cost curve.
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