Enhance Your Learning with Economics Flash Cards for quick understanding
Costs that vary with the level of production in the short term, such as raw materials, labor, and energy expenses.
Costs that can be adjusted and changed in the long term, including investments in capital, research and development, and changes in production technology.
Costs that do not change with the level of production, such as rent, salaries, and insurance.
Costs that vary with the level of production, such as raw materials, direct labor, and utilities.
The sum of fixed costs and variable costs, representing the overall expenses incurred in producing a certain quantity of goods or services.
The total costs divided by the quantity of output, indicating the average cost per unit of production.
The additional cost incurred by producing one more unit of output, calculated as the change in total costs divided by the change in quantity.
The production process that involves at least one fixed input, limiting the ability to adjust production levels in response to changes in demand.
The production process that allows all inputs to be varied, enabling adjustments in production levels to meet changing market conditions.
The cost advantages that arise from increased production and efficiency, leading to lower average costs as output expands.
The cost disadvantages that occur when a firm becomes too large and experiences inefficiencies, resulting in higher average costs as output increases.
Graphical representations of the relationship between costs and the quantity of output produced, including the average cost curve, marginal cost curve, and total cost curve.
The goal of a firm to maximize its profits by producing at the level of output where marginal revenue equals marginal cost.
The value of the next best alternative forgone when making a decision, representing the potential benefits that could have been obtained from choosing a different option.
Costs that have already been incurred and cannot be recovered, regardless of future decisions or actions.
Costs imposed on third parties or society as a whole due to the production or consumption of goods or services, not reflected in the market price.
Costs borne by a firm or individual as a result of their own production or consumption activities.
Direct, out-of-pocket expenses incurred by a firm or individual, such as wages, rent, and materials.
Opportunity costs that do not involve direct monetary payments, such as the value of self-owned resources used in production.
The explicit costs incurred by a firm, including both fixed and variable costs, as recorded in financial statements.
The total costs incurred by a firm, including both explicit and implicit costs, taking into account the opportunity costs of resources used.
The consideration of different costs and time horizons when making decisions in the short term versus the long term.
A systematic approach to evaluating the costs and benefits of a decision or project, comparing the expected gains and losses to determine its overall desirability.
The sacrifices or compromises made when choosing one option over another, as resources are limited and choices have opportunity costs.
Efficiency refers to achieving maximum output with minimum input or resources, while effectiveness focuses on achieving desired goals or outcomes.
The different types of market structures, such as monopoly, perfect competition, oligopoly, and monopolistic competition, influencing costs and pricing behavior.
A market structure characterized by a single seller or producer, leading to higher prices and potentially higher costs due to lack of competition.
A market structure with many buyers and sellers, leading to lower prices and potentially lower costs due to intense competition and price-taking behavior.
A market structure dominated by a few large firms, leading to interdependence and potential collusion, affecting prices and costs.
A market structure with many sellers offering differentiated products, leading to higher prices and potentially higher costs due to product differentiation and advertising expenses.
The impact of government policies, regulations, subsidies, and taxes on costs and market outcomes, aiming to correct market failures or promote certain objectives.
Government-imposed rules and restrictions on businesses and industries, influencing costs through compliance requirements and market behavior.
Financial assistance provided by the government to support specific industries or activities, reducing costs for recipients and potentially affecting market competition.
Government-imposed levies on individuals, businesses, and goods, increasing costs and potentially influencing production decisions and market behavior.
The costs or benefits imposed on third parties or society as a result of economic activities, not accounted for in market transactions and prices.
Goods or services that are non-excludable and non-rivalrous, leading to challenges in cost recovery and provision due to free-rider problems.
Situations where markets fail to allocate resources efficiently, resulting in suboptimal outcomes and potential costs to society.
A sustained increase in the general price level of goods and services, eroding purchasing power and potentially affecting production costs and economic stability.
The state of being without a job or actively seeking employment, leading to lost output, income, and potential social costs.
The increase in an economy's production capacity over time, potentially leading to higher resource utilization, productivity, and living standards, but also associated with environmental and social costs.
The exchange of goods and services across national borders, influencing costs through comparative advantage, tariffs, quotas, and trade agreements.
The value of one currency in relation to another, affecting costs and competitiveness in international trade and financial transactions.
Government policies and measures aimed at restricting imports and promoting domestic industries, potentially leading to higher costs and reduced efficiency.
The increasing interconnectedness and integration of economies and societies worldwide, influencing costs through trade, investment, technology transfer, and cultural exchange.
The negative impacts on the environment resulting from economic activities, including pollution, resource depletion, and climate change, leading to potential ecological and social costs.
The ability to meet present needs without compromising the ability of future generations to meet their own needs, considering economic, environmental, and social costs and benefits.