Production Flashcards
1
Q
Profit
A
The amount of money a producer has left after all the costs have been paid i.e. when the total revenue is greater than total cost
2
Q
Production
A
The total output of goods and services produced by a firm or an industry in a period of time
3
Q
Productivity
A
The output per unit of input
4
Q
Total cost
A
All the costs of the firm added together
5
Q
Average cost
A
The cost of producing a unit of output (unit cost of production)
6
Q
Total revenue
A
The total income of the firm from the sale of its goods and services
7
Q
Average revenue
A
The revenue per unit sold
8
Q
Loss
A
When a firm’s revenue is less than its costs
9
Q
Economies of scale
A
The cost advantages a firm can gain by increasing the scale of production
