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20 Cards in this Set

  • Front
  • Back
average cost minimization
Activity level that generates the lowest average cost, MC = AC
breakeven point
Output level at which total profit is zero
dependent variable
Y variable determined by X values
Analytical expression of functional relationships
Visual representation of data
incremental change
Total difference resulting from a decision
incremental profit
Gain or loss associated with a given managerial decision
independent variable
X variable determined separately from the Y variable
inflection point
Point of maximum or minimum slope
Change in the dependent variable caused by a 1-unit change in an independent variable
marginal cost
Change in total cost following a 1-unit change in output
marginal profit
Change in total profit due to a 1-unit change in output
marginal revenue
Change in total revenue associated with a 1-unit change in output
optimal decision
Choice alternative that produces a result most consistent with managerial objectives
profit maximization
Activity level that generates the highest profit, MR = MC and M? = O
revenue maximization
Activity level that generates the highest revenue, MR = 0
Measure of the steepness of a line
Table of electronically stored data
List of economic data
A straight line that touches a curve at only one point