ch5-3
profit maximizing quantity of output
the situation that exists when marginal costs and marginal revenue are equal
total cost
the sum of the fixed and variable costs
total revenue
the number of units sold multiplied by the average price per unit
variable cost
a cost that changes when the business rate of operation or output changes.
marginal analysis
a type of cost-benefit decision making that compares the extra benefits to the extra costs of an action
e-commerce
electronic business or exchange conducted over the internet.
fixed cost
the cost that a business incurs even if the plant is idle and output is zero
marginal cost
the extra cost incurred when a business produces one additional unit of a product
marginal revenue
the extra revenue associated with the production and sale of one additional unit of output
break-even point
the total output or total product the business needs to sell in order to cover its total costs
overhead
total fixed cost