5.2-6 Flashcards
Fixed cost
Costs that are the same regardless
Marginal product
Extra output or change in total production by adding one more
Total revenue
Money a business makes from the sake of its products
Surplus
Something that remains above what is used or needed
Price ceiling
Maximum set for a good to be sold
Variable costs
Costs change are depending on the level of production
Marginal revenue
Revenue received from production of an additional unit of products
Shortage
Not enough of something that is needed
Price floor
Minimum price for a good to be sold
How to find total costs
Fixed cost + variable cost
How to find marginal cost
Total variable cost / marginal product
How to find total revenue
Total products x average selling price
How to find marginal revenue
Divide change in total revenue by the marginal product
How to find total profits
Total cost minus total revenue
How to find total variable cost
Multiply number of workers by variable cost per worker
