2.6 - Production Flashcards
1
Q
Production
A
the process which converts inputs (Factors of Production) into outputs (goods and services)
2
Q
Production
A
the total outputs of goods and services over a period of time
3
Q
GDP
A
the total income of a country from selling goods to others
4
Q
Productivity
A
degree of efficiency in the way the factors of production are used
5
Q
Productivity
A
total output/total input
6
Q
Variable cost
A
a cost that changes with output/quantity
7
Q
Fixed cost
A
a cost that doesn’t change with output/quantity
8
Q
Average cost
A
the cost of producing one unit
9
Q
Total revenue
A
the total income a firm makes from selling its goods and services
10
Q
Average revenue
A
revenue mage on each unit; calculated by dividing TR by output sold
