Business Concepts Flashcard

Front

What is a basic question any business owner has to answer?

Back

How many workers to hire?

Front

Define Marginal Product of Labor

Back

the change in output from hiring 1 additional unit of labor

Front

Increasing Marginal Returns

Back

The level of production increases as the number of workers increases

Front

Diminishing Marginal Returns

Back

marginal product of labor decreases with the number of workers increases

Front

Human-made resources that is used to produce other goods & services.

Back

Capital

Front

When the 8th worker is hired, the marginal product of labor becomes negative. Why?

Back

there are more workers than are needed, disrupting output.

Front

Fixed costs...

Back

are costs that don't change depending on output

Front

Variable costs

Back

Costs that change with level of output

Front

Total Costs =

Back

Fixed Costs + Variable Costs

Front

What is marginal costs?

Back

additional cost of producing one additional unit of output