Opportunity Cost Flashcards
1
Q
opportunity cost
A
the principle that one opportunity must be given up to produce or consume another
2
Q
production cost
A
the total amount needed to produce a good or service
3
Q
production probability curve
A
a representation of the combination of goods and services that can be produced in a situation
4
Q
profit
A
income received from an economic action, minus the cost of taking the action
5
Q
revenue
A
the total income received from an economic action
