The total fixed cost divided by the quantity level of output.
The total product that a firm produces in a given time period divided by
the quantity of a variable input that it uses to produce it.
The total cost divided by the quantity level of output.
The total variable cost divided by the quantity level of output.
Long-run returns when an increase in output is exactly proportion ate to
the increase in inputs.
A condition that occurs in the short run when the marginal product is
falling-that is, when the product of each additional unit of a
variable input is smaller than the product of the unit of the
variable input added just before.
Long-run decreasing returns.
The technically efficient input combination with the lowest cost to the
firm.
Long-run increasing returns.
Money payments for the use of inputs.
Costs incurred for inputs for high no obvious payment is made because no
transaction takes place.
The condition that occurs in the short run when each successive unit of a
variable input adds more product to a firm's output than was
added by the preceding unit of the variable input.
The costs of acquiring information that decreases the uncertainty of
making transactions.
The development of an invention from the original idea to a practical
use.
Labor, natural resources, and capital. Also called resources or factors
of production.
The discovery of a new product or a new technical tool or process.
A curve made up of points showing alternative combinations of the inputs
on the axes that a firm can buy for a given cost outlay.
A curve based on a firm's production function that shows all of the
technically efficient input combinations for producing a certain
quantity of output.
A graph showing several out of an infinite number of isoquants, one for
every quantity of output that a firm could possibly produce.
A period of time long enough to make all the changes that a firm wants to
make within the limits of its existing production function.
The long- run total cost divided by the quantity level of output.
The addition to long-run total cost when one more unit of out put is
produced.
The total cost of producing a certain level of output when a firm is able
to vary all of its inputs.
The addition to total cost when one more unit of output is produced.
The additional product produced per time period when one more unit of a
variable input is added.
The condition that results when the marginal product of a unit of
variable input is negative.
The economic goods and services that business firms produce for sale to
consumers, other business firms, and governments.
The transformation of inputs into outputs.
A relationship that shows the maximum output that can be obtained from
given amounts of inputs as of a specified point in time.
The amount of output produced by a unit of resource input during a given
span of time.
The period of time during which at least one of a business firm's inputs
cannot be varied.
A method of production that does not waste resources.
An advance in knowledge of the industrial arts and/or improved techniques
of organizing production.
The entire cost incurred by a firm producing a certain level of output.
In the short run it is the sum of total fixed costs and total
variable costs.
The cost that does not vary with the quantity of output that a firm
produces.
The amount of product that a firm produces per time period with a certain
number of fixed (in the short run) and variable inputs.
The cost that varies with the quantity of output that a firm produces.
The costs associated with facilitating the workings of a market by
enabling potential buyers and sellers to interact.
A period of time long enough so that a firm can introduce a whole new
technology and change its production function.
