|
|
INCREASING MARGINAL RETURNS: In the short-run production of a firm, an increase in the variable input results in an increase in the marginal product of the variable input. Increasing marginal returns typically surface when the first few quantities of a variable input are added to a fixed input. Compare this with decreasing marginal returns. You should also compare this with economies of scale associated with long-run production.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 1: Economic Basics | Unit 3: The Economy
|
Page: 9 of 18
|
|
Topic:
A Mixed Economy: The Mix
|
|
|
A pure market economy and a pure command economy are two theoretical extremes in the allocation of resources. - Real world economies form a continuum bounded by these two extremes. They are mixed economies:
- A mixed economy is one that relies on both markets and government to allocate resources.
- Market-oriented economies, also called capitalism, are mixed economies that lean heavily to the market end.
- Socialism and communism are mixed economies that lean more (a lot more) toward government control.
The mixed U.S. economy leans heavily to the market end of the market-government continuum.
Three indicators of government involvement:- Taxes: Government controls about 1/3 of the revenue generated in the economy each year.
- Spending: Government buys 20% of the goods produced each year.
- Regulations: Government influences many allocation decisions through laws, rules, and other restrictions.
|
|
|
|
|
|
|
AVERAGE COST The opportunity cost incurred per unit of good produced. This is calculated by dividing the cost of production by the quantity of output produced. While average cost is a general term relating cost and the quantity of output, three specific average cost terms are average total cost, average variable cost, and average fixed cost. A related cost term is marginal cost.
Complete Entry | Visit the WEB*pedia |
|
|
|
In 1914, Ford paid workers who were age 22 or older $5 per day -- double the average wage offered by other car factories.
|
|
|
"Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations. " -- Steve Jobs, Apple Computer founder
|
|
USDA
United States Department of Agriculture
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
