Economics: Topic 2, Year 2 Definitions

The time period in which it is only possible to change the level of input of variable factors of production.

The time period in which it is possible to change the level of input of all of the factors of production.

The quantity of output produced by a given quantity of inputs over a period of time.

The quantity of output produced per unit of input.

The additional quantity of output produced by one extra unit of input.

The proportionate change in output of a firm or industry resulting from a proportionate increase in all inputs.

Occurs if the percentage increase in output is greater than the percentage increase in input.

Occurs if the percentage increase in output is equal to the percentage increase in input.

Occurs if the percentage change in output is less than the percentage increase in input.

The sum of fixed costs and variable costs.

The total costs divided by the number of units produced.

The addition to total costs arising from making one more item.

The lowest level of output at which long-run average cost is minimised.

The total money received from the sale of a firm's goods and services. It can also refer to the total money received from the sale of a particular good or service.

The average receipt of money for each good or service that is sold.

The addition to total revenue as a result of the sale of one more unit of output.

The difference between the total revenue of a firm and its total costs.

Making the highest possible level of profit.

The minimum level of profit needed to keep a firm operating in its present market.

Any profit over and above the level of normal profit.

The creation of a new idea or product.

The successful exploitation of new ideas.

Describes the process of adapting new applications of practical or mechanical sciences to industry and commerce.

An incessant process by which innovation and new technology constantly lead to the introduction of new production units that replace outdated ones.