Create an account
the occupation of maintaining and auditing records and preparing financial reports for a business
Constant Returns to Scale
the property whereby long-run average total cost stays the same as the quantity of output changes
Decreasing (Marginal Returns)
when the marginal product of an additional worker is less than the marginal product of the previous worker
Diminishing Marginal Returns
a level of production in which the marginal product of labor decreases as the number of workers increases
Diseconomy of Scale
Long run concept where a firm loses profit through its expansion due to communication and marginal costs
a periodic charge that does not vary with business volume (as insurance or rent or mortgage payments etc.)
Increasing (Marginal) Returns
a level of production in which the marginal product of labor increases as the number of workers increases
A period of sufficient time to alter all factors of production used in the productive process - all inputs can be changed.
Long Run Average Total Cost
A curve that indicates the lowest average cost production at each rate output when size or scale of the firm varies. It is also called the planning curve.
the payment made by a firm to obtain and retain entrepreneurial ability; the minimum income entrepreneurial ability must receive to induce it to perform entrepreneurial functions for a firm
the extra output or change in total product caused by the addition of one more unit of variable input
The relationship between quantity of inputs used to make a good and the quantity of output of that good
a period of time sufficiently short that at least one of the firm's factors of production cannot be varied
all the goods and services produced by a business during a given period of time with a given amount of input`
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