2.6 Flashcards
profit
profit is the total amount of money left after all costs have been paid
MNC
MNC is multinational companies
production
production is the total output of a good or service produced by a firm over a set period of time
how are good and service made
goods and services are made by combining the factors of production
how is productivity measured?
productivity is measured as: total output /total input
what does productivity depend on
productivity depends on improving the inputs to the production process
the benefits of increased productivity
benefits of increased productivity can result in higher profits, increase in employment, increase in market share,
what’s the difference between productivity and production
productivity is how efficient the factors of production in the production process are; production is the total output of a good or service by combining all the factors of production
what is TC
Total cost is the costs of producing the item, these vary with variable cost(output) and the costs of a firm just existing(machinery, marketing) (FIXED COST)
how do you calculate total cost?
total cost= total variable costs+ total fixed costs
what is AC?
average cost is the cost of producing a single unit
how do I calculate AC?
ac= total cost/quantity(output)
what is TR?
total revenue is the total income of a firm from the sale of its goods or services
how do I calculate total revenue?
total revenue=price x quantity
what is AR?
average revenue is the revenue per unit sold, therefore it’s the same as price
