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11 Cards in this Set
- Front
- Back
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Marginal Cost (MC)
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the increase or decrease in costs as a result of one more or one less unit of output.
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Variable Cost (VC)
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expenses that change in proportion to the activity of a business.[1] Variable cost is the sum of marginal costs over all units produced. It can also be considered normal costs. Fixed costs and variable costs make up the two components of total cost.
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Average Variable Cost (AVC)
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is an economics term that refers to a firm's variable costs (labor, electricity, etc.) divided by the quantity (Q) of output produced. Variable costs are those costs which vary with output.
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Average Total Cost (ATC)
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In economics, and cost accounting, total cost (TC) describes the total economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which are independent of the quantity of a good produced and include inputs (capital) that cannot be varied in the short term, such as buildings and machinery.
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Marginal Revenue (MR)
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is the additional revenue that will be generated by increasing product sales by 1 unit
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Marginal Utility (MU)
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the amount that utility increases with an increase of one unit of an economic good or service.
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Long Run Supply Curve
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The supply curve that describes the response of the quantity supplied to a change in price after all technologically possible adjustments have been made.
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Short Run Supply Curve
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A curve showing the relationship between quantity supplied and market price, with one or more fixed factors; it is the horizontal sum of marginal cost curves (above the level of average variable costs) of all firms in a perfectly competitive industry.
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Total Utility (TU)
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The total satisfaction of wants and needs obtained from the use or consumption of a good and service.
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Diminishing Marginal Utility
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In economics, the marginal utility of a good or service is the utility gained (or lost) from an increase (or decrease) in the consumption
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Sunk Cost
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Already incurred, thus irrelevant for present and future economic decisions
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