Microeconomics Unit 3
- Created by: l1lijan
- Created on: 19-11-19 19:45
View mindmap
- Costs
- Depreciation
- The cost of replacing capital equipment that has worn out.
- Marginal Cost
- The cost of producing one more unit of a good.
- Change in total cost / Change in quantity
- The cost of producing one more unit of a good.
- Short run
- One factor of production is fixed
- Long run
- All factors of production are variable
- Very long run
- All factors of production are variable and technology can change.
- Very short run
- All factors of production are fixed.
- Law of diminishing marginal returns
- Occurs when at least one factor of production cannot be changed.
- Labour productivity
- Output per worker
- Fixed cost
- Costs that don't change with the level of production
- Rent, salaries
- Costs that don't change with the level of production
- Law of diminishing marginal returns
- A short run concept
- Economies of scale
- a long run concept
- Shutdown point
- When average variable costs are higher than average revenue
- If they are more than covering their AVCs, a contribution can be made towards their fixed costs.
- Depreciation
Similar Economics resources:
Teacher recommended
Teacher recommended
Teacher recommended
Comments
No comments have yet been made