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FIXED COST: In general, cost that does not change with changes in the quantity of output produced. More specifically, fixed cost is combined with the adjectives "total" and "average" to indicate the overall level of fixed cost or the per unit fixed cost. Fixed cost is incurred whether of not any output is produced. The same fixed cost is incurred at any and all output levels. This means that total fixed cost is, in fact, FIXED. However, it also means that average fixed cost, or fixed cost per unit, declines as the output level increases. Spreading out $100 over 1,000 units gives a lower per unit fixed cost that spreading out $100 over 10 units.
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Lesson 4: Production Possibilities | Unit 2: The Schedule
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Page: 7 of 24
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Opportunity cost is greater as we produce more calibrators. Why?- The law of increasing opportunity cost which says that the opportunity cost of producing a good increases as more and more of the good is produced.
- Third rule of inequality. All resources are not equally suited to produce all goods.
- First calibrator (A to B) uses resources best suited for calibrators and least suited for shoes.
- Tenth calibrator (J to K) uses resources least suited for calibrators and best suited for shoes.
- As more of a good is produced and supplied, opportunity cost increases.
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LABOR FORCE The total number of people in an economy, society, or country willing and able to exert mental and/or physical efforts in productive activities. The labor force is a more technical term for the labor resource or labor supply. It includes both employed workers and unemployed workers. An official variation of this term is civilian labor force. While labor force may or may not include military personnel, the civilian labor force explicitly excludes the military. Labor and labor resources are the theoretical terms that economists like to banter about. Labor force and civilian labor force are the terms of choice for government policy makers, data-crunchers, and others who need precise labor resource numbers.
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GRAY SKITTERY
[What's This?]
Today, you are likely to spend a great deal of time wandering around the shopping mall hoping to buy either 500 feet of coaxial cable or a coffee cup commemorating the 1960 Presidential election. Be on the lookout for cardboard boxes.
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This isn't me! What am I?
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A scripophilist is one who collects rare stock and bond certificates, usually from extinct companies.
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"Do not wait; the time will never be just right " -- Napoleon Hill, author
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P/E
Price-Earnings Ratio
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