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NEW CLASSICAL ECONOMICS: A body of economic thought emerging in the last quarter of the 20th century based on greater reliance on voluntary market exchanges, a laissez faire approach to government policies, and recognition of the supply-side of the economy. New classical economics, as the name implies, is a rejuvenation of classical economics that dominated economic thought from the 1770s to the 1930s and was developed to counter Keynesian economics that was prevalent from the 1930s to the 1970s.
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AVERAGE VARIABLE COST: Total variable cost per unit of output, found by dividing total variable cost by the quantity of output. Average variable cost, abbreviated AVC, decreases with additional production at relatively small quantities of output, then eventually increases with relatively larger quantities of output. This pattern is illustrated by a U-shaped average variable cost curve. The logic behind this decrease-increase U-shaped pattern can be found with a closer examination of the law of diminishing marginal returns, average product, and the average-marginal rule. You should also check out marginal cost. See also | total variable cost | short-run production | average variable cost curve | average product | quantity | technology | resource prices | average total cost | marginal cost | average fixed cost | law of diminishing marginal returns | average-marginal rule | U-shaped cost curves | increasing marginal returns | decreasing marginal returns |
Recommended Citation:AVERAGE VARIABLE COST, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: July 26, 2024].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: average variable cost
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LAW OF SUPPLY The direct relationship between supply price and the quantity supplied, assuming ceteris paribus factors are held constant. This economic principle indicates that an increase in the price of a commodity results in an increase in the quantity of the commodity that sellers are willing and able to sell in a given period of time, if other factors are held constant. The law of supply is an important principle in the study of economics.
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WHITE GULLIBON
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Today, you are likely to spend a great deal of time at a going out of business sale looking to buy either a bookshelf that will fit in your closet or a birthday greeting card for your grandfather. Be on the lookout for mail order catalogs with hidden messages.
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Paper money used by the Commonwealth of Massachusetts prior to the U.S. Revolutionary War, which was issued against the dictates of Britain, was designed by patriot and silversmith, Paul Revere.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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ACCR
Annual Cost of Capital Recovery
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