|
|
DECREASING RETURNS TO SCALE: A given proportionate increase in all resources in the long run results in a proportionately smaller increase in production. Decreasing returns to scale exists if a firm increases ALL resources -- labor, capital, and other inputs -- by 10%, and output increases by less than 10%. You might want to compare increasing returns to scale and constant returns to scale.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 14: Production | Unit 2: Production Measures
|
Page: 10 of 25
|
In this unit, you should have learned about:- Total product as the total quantity of output produced for different amounts of variable input.
- How total product increases as the quantity of variable inputs are added, reaches a peak, and then declines.
- Average product as the output produced per unit of variable input.
- How average product increases for the first few units of variable inputs, reaches a peak, and then declines.
- Marginal product as the change in total product resulting from a change in variable input.
- How Marginal product increases for the first few units of variable inputs, reaches a peak, and then declines.
- The law of diminishing marginal returns as the guiding principle for short-run production.
|
|
|
|
|
|
|
ACCOUNTING PROFIT The difference between the revenue received by a firm and the explicit accounting cost incurred. This is the profit listed on a firm's balance sheet, appears periodically in the financial sector of the newspaper, and is reported to the Internal Revenue Service for tax purposes. While accounting profit is the "standard" designation of profit used in the business world, economists prefer to use economic profit
Complete Entry | Visit the WEB*pedia |
|
|
PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale wanting to buy either a combination CD player, clock radio, and telephone (with answering machine) or a revolving spice rack. Be on the lookout for celebrities who speak directly to you through your television.
Your Complete Scope
This isn't me! What am I?
|
|
|
A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
|
|
|
"A leader, once convinced that a particular course of action is the right one, must . . . be undaunted when the going gets tough." -- President Ronald Reagan
|
|
MCA
Monetary Control Act of 1980
|
|
|
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
|
|
