|
|
MARGINAL COST AND DIMINISHING MARGINAL RETURNS: Decreasing then increasing marginal cost that gives rise to a U-shaped marginal cost curve reflects increasing then decreasing marginal returns. In particular the decreasing marginal returns is caused by the law of diminishing marginal returns. As such, the law of diminishing marginal returns affects not only the short-run production of a firm but also the cost of production in the short run.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 4: Production Possibilities | Unit 2: The Schedule
|
Page: 5 of 24
|
This is a simple, hypothetical production possibilities schedule for the economy.- The economy is using all resources with given technology to efficiently produce two goods, jogging shoes and quartz clock calibrators.
- Bundles A through K represent production alternatives for the economy, such as bundle D with 3 calibrators and 425 pairs of shoes. We have unlimited possibilities using available resources and technology to the fullest extent.
- All shoes, no calibrators, bundle A.
- All calibrators, no shoes, bundle K.
- Some of each good, bundles E or J.
- How about 9 calibrators and 410 pairs of shoes? No! Each bundle is the maximum we can produce.
|
|
|
|
|
|
|
PAYMENT FLOW In the circular flow, the transfer of money in payment in exchange for the counter-clockwise physical flow of goods and services. The payment flow is the monetary payment for goods and services received by the household sector from the business sector through product markets and the monetary payment for resource services obtained by the business sector from the household sector through resource markets. The payment flow is usually illustrated as a clockwise flow for a model with the product markets at the top, resource markets at the bottom, household sector at the left, and business sector at the left. The physical flow moves in the opposite direction.
Complete Entry | Visit the WEB*pedia |
|
|
BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet hoping to buy either a large stuffed brown and white teddy bear or a replacement washer for your kitchen faucet. Be on the lookout for fairy dust that tastes like salt.
Your Complete Scope
This isn't me! What am I?
|
|
|
The average bank teller loses about $250 every year.
|
|
|
"When the solution is simple, God is answering." -- Albert Einstein
|
|
WAPM
Weak Axiom of Profit Maximization
|
|
|
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
|
|
