Economics 7
- Created by: Gabrielle
- Created on: 29-12-13 18:24
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- Costs
- Total Costs
- The market value of the inputs a firm uses in production
- Opportunity costs
- The cost of something is what you give up to get it
- Explicit costs
- the input costs that the firm needs to buy
- Economic Profit
- Total revenue - all the opportunity costs (explicit & implicit)
- Production Function
- the amount of output which can be produced given different combinations of factor inputs
- Some factors of production cannot be changed in the short run
- All factors can be altered in the long run
- Marginal product
- The increase in quantity of output obtained from one additional unit of an input
- the amount of output which can be produced given different combinations of factor inputs
- Fixed and Variable Costs
- Diseconomies of scale
- Long-run average total cost rises as the quantity of output increases
- Total Costs
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