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AFC: The abbreviation for average fixed cost, which is fixed cost per unit of output, found by dividing total fixed cost by the quantity of output. Average fixed cost is one of three related cost averages. The other two are average variable cost and avarage total cost. Average fixed cost decreases with larger quantities of output. Because fixed cost is FIXED and does not change with the quantity of output, a given cost is spread more thinly per unit as quantity increases. A thousand dollars of fixed cost averages out to $10 per unit if only 100 units are produced. But if 10,000 units are produced, then the average shrinks to a mere 10 cents per unit.
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Lesson 11: Elasticity Basics | Unit 4: A Continuum
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Page: 19 of 25
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Topic:
Perfectly Inelastic
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- At the other end of the elasticity continuum is perfectly inelastic:
- Perfectly inelastic is an elasticity alternative in which an infinitely large change in one variable (price) is needed to cause an infinitesimally small change in another variable (quantity).
- Once again, this works for both the price elasticity of demand and the price elasticity of supply, because the negative value of the price elasticity of demand is ignored.
- Perfectly inelastic demand and supply are represented by vertical demand and supply curves.
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SCIENCE A discipline, or topic of study, that uses the scientific method to investigate and explain the operation of the world by testing and verifying hypothesized relations. Science is commonly divided into physical sciences (including chemistry, physics, and biology) and social sciences (including economics, sociology, and political science). Science is not just a subject, but a method of investigation using the scientific method.
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GREEN LOGIGUIN
[What's This?]
Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway wanting to buy either one of those "hang in there" kitty cat posters or a velvet painting of Elvis Presley. Be on the lookout for deranged pelicans.
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The first U.S. fire insurance company was established by Benjamin Franklin in 1752 in Philadelphia.
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"If we all did the things we are capable of doing, we would literally astound ourselves." -- Thomas Edison
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QLR
Quasi-Likelihood Ratio
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