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MARGINAL COST CURVE: A curve that graphically represents the relation between marginal cost incurred by a firm in the short-run product of a good or service and the quantity of output produced. This curve is constructed to capture the relation between marginal cost and the level of output, holding other variables, like technology and resource prices, constant. The marginal cost curve is U-shaped. Marginal cost is relatively high at small quantities of output, then as production increases, declines, reaches a minimum value, then rises. This shape of the marginal cost curve is directly attributable to increasing, then decreasing marginal returns (and the law of diminishing marginal returns).
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Lesson 10: Gross Domestic Product | Unit 1: Measuring Production
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Page: 4 of 25
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The third GDP highlight phrase is 'a given period of time'. GDP is production that takes place during a specific period, usually one year. - GDP is a flow. Current production takes place during the specific period of time under study.
- Flows are measured over a period of time. GDP is measured from January 1st to December 31st.
- Stocks are measured at a point in time. The quantity of money is measured at an instant in time, like July 26th at 8:15.
- In addition to GDP, other production and income measures in this lesson are flows.
- In addition to money, employment, business inventories, and labor force are stocks.
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AVERAGE FACTOR COST CURVE, MONOPSONY A curve that graphically represents the relation between average factor cost incurred by a firm for employing an input and the quantity of input used. Because average factor cost is essentially the price of the input, the average factor cost curve is also the supply curve for the input. The average factor cost curve for a firm with no market control is horizontal. The average factor cost curve for a firm with market control is positively sloped.
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time going from convenience store to convenience store hoping to buy either storage boxes for your computer software CDs or a set of tires. Be on the lookout for rusty deck screws.
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On a typical day, the United States Mint produces over $1 million worth of dimes.
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"Plans are only good intentions unless they immediately degenerate into hard work." -- Peter Drucker, management consultant
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VIR
Variable Interest Rate
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