The derivation of an individual demand curve explains how the quantity of a product a single consumer wants
Glossary Category: Economics
returns to scale
Returns to scale measures how much the total output changes when you increase all production inputs by the
diseconomies of scale
Diseconomies of scale occur when a company grows so large that its average costs begin to increase rather
external economies of scale
External economies of scale are cost savings that happen when an entire industry grows. These benefits are shared
internal economies of scale
Internal economies of scale are cost savings that a company achieves as it grows larger and increases its
variable costs
Variable costs (VC) are business expenses that change in direct proportion to how much a company produces. As
fixed costs
Fixed costs (FC), also known as overhead costs, are expenses that do not change based on how much
marginal product
Marginal product (MP) is the extra output created by adding one more unit of a variable resource, such
total product
Total product (TP) refers to the complete amount of output a business produces by using a specific quantity
average cost
Average cost (AC) refers to the total cost divided by the quantity of output produced. It represents how