*Take a few moments to find out about Kiva and Apoyo Integral. Sam Baker, a graduate of Santa Clara University and now a Kiva Fellow working to promote microfinancing in rural El Salvador, will visit CISS on Wednesday, September 2 to add some "real-life perspective" to our economics course.
*Visit Kiva to learn about a website and movement that allows people to choose who and how they support others in need. . .moving away from the models which promote simple charity towards a new concept which helps people help other people help themselves.
*Read Sam's Article, "Mi Casa, Tu Casa: A Kiva Fellow at the Apoyo Intergral Field Partner in El Salvador," about his experience working to combine micro-financing and technical assistance in homebuilding to benefit those living in the Salvadoran countryside or "iPhone Water Pump" about merging technology and grass-roots development.
Human Capital
For further reading: "Human Capital" by Gary S. Becker from the Library of Economics and Liberty
Chapter 1 Online Review
Click here for an online review with section summaries and practice quizzes by the publishers of your textbook.
August & September 2009 Assignment Calendar
Welcome back to school and to the wonderful world of economics!!! You can find the class topic & assignment calender by clicking here.
WeLCome SuPER SeNiORs!!!
Welcome to the CISS Economics website. . .
This site is designed to help you prepare for your semester exam. At the right, you'll notice links to your classmates' notes. The selected topics serve as a collective outline of essential information you'll want to focus on as you review. At the right, you'll also notice "Economics Resources," which contains, among other links, a link to the Glencoe textbook website with activities and practice quizzes.
You can also find a complete copy of all the notes passed out in class here.
Please do not hestitate to send me an email with any questions or suggestions. . .
vicklauren@gmail.com
This site is designed to help you prepare for your semester exam. At the right, you'll notice links to your classmates' notes. The selected topics serve as a collective outline of essential information you'll want to focus on as you review. At the right, you'll also notice "Economics Resources," which contains, among other links, a link to the Glencoe textbook website with activities and practice quizzes.
You can also find a complete copy of all the notes passed out in class here.
Please do not hestitate to send me an email with any questions or suggestions. . .
vicklauren@gmail.com
Public Utilities & Subsudies
Notes by Monica
1. Public Utilities
• Is an example of how the government plays an indirect role when it helps the market economy operate smoothly and efficiently.
• It means municipal or invest or owned companies that offer products. For example: water, sewerage, electric services.
• They have little competition and want government supervision. Do to the little competition they have little incentive to offer reasonable prices.
• Government gives money to social security checks, veterans, benefits, financial aid to college students, rent subsides, unemployment companies. They give these recipients the power to “vote” by making their demand known in the market. It influences the production of goods and services.
2. Subsidy
• Is government payment to an individual, business, or other group to encourage or protect economic activity.
• They lower the cost of production and encourage producers to remain in the market and new producers to enter.
• When subsidies are repealed cost goes up, this causes producer to lave the market and supply curve shifts to the left.
• These subsidies help farmers in the milk, cotton, wheat, and soybean industries support their income. It attracted many farmers into the farming industry.
3. Market Failure
• Is a condition that causes a competitive market to fail.
• Five main types of market failure:
- Inadequate Competition: it happens when merges and acquisitions become big and with fewer firms dominating the market, so the decrease in competition reduces the efficient use of scarce resources. If a firm does not face adequate competition they could expend the money on big salaries or bonuses and other benefits. Inadequate competition may enable business to influence politicians in order to get special treatment that then enriches it managers and owners.
- Inadequate Information: if a resource is not use correctly everyone most have adequate information about market conditions. The information is posted on internet or newspapers,.
- Resources Immobility: Land, capital, labor, and entrepreneurs do not move to markets where returns are highest, they stay put and may be unemployed.
- Public Goods: are goods or services whose benefits are available to everyone and are paid for collectively. Examples: uncrowned highways, national defense, flood control measures, and police and fire protection.
- Externalities: economic side effect that neither harms nor benefits an uninvolved third party that is not involved in the activity that causes it. There is negative externality that means harmful side effect that affects an uninvolved third party because of the actions of others. Finally the positive externality is the beneficial side effect that affects an uninvolved third party.
1. Public Utilities
• Is an example of how the government plays an indirect role when it helps the market economy operate smoothly and efficiently.
• It means municipal or invest or owned companies that offer products. For example: water, sewerage, electric services.
• They have little competition and want government supervision. Do to the little competition they have little incentive to offer reasonable prices.
• Government gives money to social security checks, veterans, benefits, financial aid to college students, rent subsides, unemployment companies. They give these recipients the power to “vote” by making their demand known in the market. It influences the production of goods and services.
2. Subsidy
• Is government payment to an individual, business, or other group to encourage or protect economic activity.
• They lower the cost of production and encourage producers to remain in the market and new producers to enter.
• When subsidies are repealed cost goes up, this causes producer to lave the market and supply curve shifts to the left.
• These subsidies help farmers in the milk, cotton, wheat, and soybean industries support their income. It attracted many farmers into the farming industry.
3. Market Failure
• Is a condition that causes a competitive market to fail.
• Five main types of market failure:
- Inadequate Competition: it happens when merges and acquisitions become big and with fewer firms dominating the market, so the decrease in competition reduces the efficient use of scarce resources. If a firm does not face adequate competition they could expend the money on big salaries or bonuses and other benefits. Inadequate competition may enable business to influence politicians in order to get special treatment that then enriches it managers and owners.
- Inadequate Information: if a resource is not use correctly everyone most have adequate information about market conditions. The information is posted on internet or newspapers,.
- Resources Immobility: Land, capital, labor, and entrepreneurs do not move to markets where returns are highest, they stay put and may be unemployed.
- Public Goods: are goods or services whose benefits are available to everyone and are paid for collectively. Examples: uncrowned highways, national defense, flood control measures, and police and fire protection.
- Externalities: economic side effect that neither harms nor benefits an uninvolved third party that is not involved in the activity that causes it. There is negative externality that means harmful side effect that affects an uninvolved third party because of the actions of others. Finally the positive externality is the beneficial side effect that affects an uninvolved third party.
WeLComE SuPEr SeNiORs!!!
Welcome to the CISS Economics website. . .
This site is designed to help you prepare for your semester exam. At the right, you'll notice links to your classmates' notes. The selected topics serve as a collective outline of essential information you'll want to focus on as you review. At the right, you'll also notice "Economics Resources," which contains, among other links, a link to the Glencoe textbook website with activities and practice quizzes.
You can also find a complete copy of all the notes passed out in class here.
Please do not hestitate to send me an email with any questions or suggestions. . .
vicklauren@gmail.com
Best of luck as you study!
This site is designed to help you prepare for your semester exam. At the right, you'll notice links to your classmates' notes. The selected topics serve as a collective outline of essential information you'll want to focus on as you review. At the right, you'll also notice "Economics Resources," which contains, among other links, a link to the Glencoe textbook website with activities and practice quizzes.
You can also find a complete copy of all the notes passed out in class here.
Please do not hestitate to send me an email with any questions or suggestions. . .
vicklauren@gmail.com
Best of luck as you study!
Help Make A Difference
Here are a few ways YOU can help make a REAL difference. . .
*Use GoodSearch to do your homework and surf the web. It is a search engine powered by Yahoo! that raises a 1.3 cents for your favorite charity every time you search the web. Download the toolbar so you can HELP OUT every time you use the Internet. Pick your favorite charity (there are more than 100,000 listed) or consider supporting Salvadoran youth who have grown up in orphanges and shelters continue their education. Select "Nuestro Ahora (Eashtampton, MA)."
*Use GoodShop or OneCause if you shop online. Enter your favorite store or website from either page, and they will donate a percentage of the sales to your favorite cause. Again, you can select from among your favorite charities or support "Nuestro Ahora, Inc."
*If you use Facebook, join some "Causes." Even without directly donating any money, by joining a group you help that group increase its membership, which helps your cause win support (and maybe even some funding) from Facebook. In addition, you help raise awareness for your cause among your Facebook friends. Many of the documentaries we've seen in class have "Causes" pages. . .look for "Invisible Children" among others. To support Nuestro Ahora, join "Help Orphans Study."
*Increase your SAT vocabulary using FreeRice which helps you build your verbal power while donating 20 grains of rice to the UN World Food Program operations for each term you learn.
Suggestions?? Please send them to me at vicklauren@gmail.com.
*Use GoodSearch to do your homework and surf the web. It is a search engine powered by Yahoo! that raises a 1.3 cents for your favorite charity every time you search the web. Download the toolbar so you can HELP OUT every time you use the Internet. Pick your favorite charity (there are more than 100,000 listed) or consider supporting Salvadoran youth who have grown up in orphanges and shelters continue their education. Select "Nuestro Ahora (Eashtampton, MA)."
*Use GoodShop or OneCause if you shop online. Enter your favorite store or website from either page, and they will donate a percentage of the sales to your favorite cause. Again, you can select from among your favorite charities or support "Nuestro Ahora, Inc."
*If you use Facebook, join some "Causes." Even without directly donating any money, by joining a group you help that group increase its membership, which helps your cause win support (and maybe even some funding) from Facebook. In addition, you help raise awareness for your cause among your Facebook friends. Many of the documentaries we've seen in class have "Causes" pages. . .look for "Invisible Children" among others. To support Nuestro Ahora, join "Help Orphans Study."
*Increase your SAT vocabulary using FreeRice which helps you build your verbal power while donating 20 grains of rice to the UN World Food Program operations for each term you learn.
Suggestions?? Please send them to me at vicklauren@gmail.com.
Conglomerates, Multinationals, & Mergers
Notes by Israel
Conglomerates: Is a firm that has more or 4 businesses, each making a different product. Each of does business isn’t responsible for the majority of the firm’s sales.
Ex: sonny
Multinational: it’s a corporation that has manufacturing or service operation in more than one location.
Ex: mc Donald
Horizontal merge: combination of two or more firms producing the same kind of product.
Vertical merge: combination of firms involved in different stages of manufacture or marketing.
Collusion: agreement, usually illegal, among producers to fix prices, limit output, or divide markets.
Conglomerates: Is a firm that has more or 4 businesses, each making a different product. Each of does business isn’t responsible for the majority of the firm’s sales.
Ex: sonny
Multinational: it’s a corporation that has manufacturing or service operation in more than one location.
Ex: mc Donald
Horizontal merge: combination of two or more firms producing the same kind of product.
Vertical merge: combination of firms involved in different stages of manufacture or marketing.
Collusion: agreement, usually illegal, among producers to fix prices, limit output, or divide markets.
Productivity, Trade-Offs, & Opportunity Cost
Notes by Stephanie
-Productivity: is a measure of the amount of goods and services produced with certain amount of resources.
-Productivity occurs when scarce resources are used efficiently.
-It goes when more output is produced with the same amount of resources.
-Trade-offs: are alternative choices people face when making a decision.
- To evaluate choices people may use a decision-making grid to list alternatives and criteria they may have.
-An example can be when a boy has to decide whether to buy a video game, a MP3 player, or a concert ticket. He can use a decision-making-grid to consider all his alternatives and evaluate his choices.
-Opportunity Cost: is the cost of the next-best alternative or choice a person may have when making a choice.
-Opportunity cost may be used for time, money, or resources.
-An example can be that a boy decided to buy a video game by giving up his opportunity cost that was the MP3 player.
-Productivity: is a measure of the amount of goods and services produced with certain amount of resources.
-Productivity occurs when scarce resources are used efficiently.
-It goes when more output is produced with the same amount of resources.
-Trade-offs: are alternative choices people face when making a decision.
- To evaluate choices people may use a decision-making grid to list alternatives and criteria they may have.
-An example can be when a boy has to decide whether to buy a video game, a MP3 player, or a concert ticket. He can use a decision-making-grid to consider all his alternatives and evaluate his choices.
-Opportunity Cost: is the cost of the next-best alternative or choice a person may have when making a choice.
-Opportunity cost may be used for time, money, or resources.
-An example can be that a boy decided to buy a video game by giving up his opportunity cost that was the MP3 player.
Production Possibilites & Cost-Benefit Analysis
Notes by Sophia
• Production possibilities frontier
o Definition: Diagram representing various combinations of goods and services an economy can produce when all its resources are in use.
o The producer can choose which products to produce and the amounts of each.
o The diagram indicates the maximum combinations of goods and services that can be produced.
o If some resources are not fully employed the producer will never reach its maximum potential production.
o The production possibilities frontier represents potential output at a given point in time.
o Factors that can cause a production possibilities frontier to expand:
Population growth
Expansion of stock capital
Technological improvements
Increase of productivity
o Outward movement of the production possibilities frontier indicates economic growth
• Cost-Benefit Analysis
o Definition: way of thinking about a choice that compares the cost of an action an action to its benefits.
o Businesses choose to invest in projects that have the best cost-benefit ratio.
o The highest the benefit for the lowest cost indicates a better option for investment.
• Production possibilities frontier
o Definition: Diagram representing various combinations of goods and services an economy can produce when all its resources are in use.
o The producer can choose which products to produce and the amounts of each.
o The diagram indicates the maximum combinations of goods and services that can be produced.
o If some resources are not fully employed the producer will never reach its maximum potential production.
o The production possibilities frontier represents potential output at a given point in time.
o Factors that can cause a production possibilities frontier to expand:
Population growth
Expansion of stock capital
Technological improvements
Increase of productivity
o Outward movement of the production possibilities frontier indicates economic growth
• Cost-Benefit Analysis
o Definition: way of thinking about a choice that compares the cost of an action an action to its benefits.
o Businesses choose to invest in projects that have the best cost-benefit ratio.
o The highest the benefit for the lowest cost indicates a better option for investment.
Price Ceilings & Price Floors
Notes by Rafael
“Price ceiling is a measure to ensure economic security and equity by setting a highest legal price for a product.” For example for needs like water, electricity, there needs to be a top price so everyone can afford the product and the resources are allocated better.
Pg 157
“Price floor is another measure to ensure economic security and equity by setting a lowest legal price for a product or service.” For example the minimum wage paid to workers. Pg 158
“Laissez-faire is a French term that means “allow them to do” which implies that there is an economic freedom to act and the government’s authority in this liberty is not that strict.” Pg 169
“Price ceiling is a measure to ensure economic security and equity by setting a highest legal price for a product.” For example for needs like water, electricity, there needs to be a top price so everyone can afford the product and the resources are allocated better.
Pg 157
“Price floor is another measure to ensure economic security and equity by setting a lowest legal price for a product or service.” For example the minimum wage paid to workers. Pg 158
“Laissez-faire is a French term that means “allow them to do” which implies that there is an economic freedom to act and the government’s authority in this liberty is not that strict.” Pg 169
Investment Markets
Notes by Oswaldo
Capital market, money market, mutual funds, primary/ secondary markets)
-Capital market: money is loaned and/or borrowed for more than a year.
Money market: money is loaned and/or borrowed for less than a year.
-Mutual funds: company that sells stocks in itself and uses the profits to buy stocks and bonds issued by other companies.
-Primary markets: market in which only the original issuer can sell or repurchase a financial asset. (loan is directed between government and investor)
-Secondary markets: market in which financial assets can be sold to someone other
than the original issuer. (bond can be sold over and over. Traded b/w investors)
Capital market, money market, mutual funds, primary/ secondary markets)
-Capital market: money is loaned and/or borrowed for more than a year.
Money market: money is loaned and/or borrowed for less than a year.
-Mutual funds: company that sells stocks in itself and uses the profits to buy stocks and bonds issued by other companies.
-Primary markets: market in which only the original issuer can sell or repurchase a financial asset. (loan is directed between government and investor)
-Secondary markets: market in which financial assets can be sold to someone other
than the original issuer. (bond can be sold over and over. Traded b/w investors)
Demand
Notes by Konny
Demand Schedule: Table showing the relationship between price and quantity. The demand schedule is used by economists to see the amount of a product that a consumer would be willing to buy from a wide variety of prices.
Law of Demand: states that consumers would buy more of a product at a lower price and less of a product at a higher price, a simple observation, such as a sale proves this law to be correct. For example, when stores have sales people tend to buy more of everything.
Market Demand Curve: The Demand Schedule can be illustrated graphically with connected dots to form the curve. A demand schedule and the demand curve show the same information differently. One uses a table while the other in the form of a graph.
Changes in Demand: Changes in demand occurs when there is a shift of the demand curve as people buy different amounts at every price. If the shift is to the right it shows an increase in demand; to the left a decrease.
Demand Schedule: Table showing the relationship between price and quantity. The demand schedule is used by economists to see the amount of a product that a consumer would be willing to buy from a wide variety of prices.
Law of Demand: states that consumers would buy more of a product at a lower price and less of a product at a higher price, a simple observation, such as a sale proves this law to be correct. For example, when stores have sales people tend to buy more of everything.
Market Demand Curve: The Demand Schedule can be illustrated graphically with connected dots to form the curve. A demand schedule and the demand curve show the same information differently. One uses a table while the other in the form of a graph.
Changes in Demand: Changes in demand occurs when there is a shift of the demand curve as people buy different amounts at every price. If the shift is to the right it shows an increase in demand; to the left a decrease.
Supply
Notes by Julio
Law of Supply: rule that states that a producer will provide more products when prices are high, than what he will offer when profits are low. When prices are high, producers will be more prone to offer more products in a hope for a greater profit.
Supply Schedule: a table that lists the quantity supplied at all possible prices in the market. Unlike demand, when the prices are high, the supply is also high.
Supply Curve: it is a representation of the supply schedule in the form of a graph that also shows the quantity supplied at all possible prices in the market at any time. Its curve is normally positive, from the lower left hand corner to the upper right hand corner of the graph.
Change in Supply: it is a change in the quantity that a producer offers due to a change in the price. Producers will vary the quantity supplied depending on the prices in the market; and the interaction of supply and demand will set the prices of products.
Law of Supply: rule that states that a producer will provide more products when prices are high, than what he will offer when profits are low. When prices are high, producers will be more prone to offer more products in a hope for a greater profit.
Supply Schedule: a table that lists the quantity supplied at all possible prices in the market. Unlike demand, when the prices are high, the supply is also high.
Supply Curve: it is a representation of the supply schedule in the form of a graph that also shows the quantity supplied at all possible prices in the market at any time. Its curve is normally positive, from the lower left hand corner to the upper right hand corner of the graph.
Change in Supply: it is a change in the quantity that a producer offers due to a change in the price. Producers will vary the quantity supplied depending on the prices in the market; and the interaction of supply and demand will set the prices of products.
Non-profits, Co-ops, Credit Unions, etc.
Notes by Denisse
1.Nonprofit organization: Economic organization that operates like a business but does not seek financial gain.
· Works in a businesslike way to promote the collective interests of its members rather than to seek financial gain for its owners.
2. Co-up or cooperative: A voluntary association formed to carry on some kind of economic activity that will benefit its members. Co-ups can have a variety of goals. They fall into three major categories: consumer, service, and producer.
· Consumer co-up: A voluntary association that buys bulk amounts of goods such as food or clothing on behalf of its members.
· Service co-up: Provides services such as insurance, credit, or child care to its members rather than goods.
· Producer co-ups: helps members promote or sell their products.
3. Credit union: A financial organization that accepts deposits from, and makes loans to, employees of a particular company or government agency.
4. Labor unions: An organization of workers formed to represent its members’ interests in various employment matters.
· The union participates in collective bargaining when it negotiates with management over issues such as play, working hours, healthcare coverage, vacations, and other job- related matters.
· Unions also lobby for laws that will benefit and protect their workers.
· Largest labor union in the United States: the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO).
4. Chamber of commerce: A nonprofit organization of local businesses formed to promote their interests.
· The typical chamber sponsors activities ranging from educational programs to lobbying for favorable business legislation.
5. Professional association: Nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perception of its profession. Ex. The American Medical Association (AMA).
1.Nonprofit organization: Economic organization that operates like a business but does not seek financial gain.
· Works in a businesslike way to promote the collective interests of its members rather than to seek financial gain for its owners.
2. Co-up or cooperative: A voluntary association formed to carry on some kind of economic activity that will benefit its members. Co-ups can have a variety of goals. They fall into three major categories: consumer, service, and producer.
· Consumer co-up: A voluntary association that buys bulk amounts of goods such as food or clothing on behalf of its members.
· Service co-up: Provides services such as insurance, credit, or child care to its members rather than goods.
· Producer co-ups: helps members promote or sell their products.
3. Credit union: A financial organization that accepts deposits from, and makes loans to, employees of a particular company or government agency.
4. Labor unions: An organization of workers formed to represent its members’ interests in various employment matters.
· The union participates in collective bargaining when it negotiates with management over issues such as play, working hours, healthcare coverage, vacations, and other job- related matters.
· Unions also lobby for laws that will benefit and protect their workers.
· Largest labor union in the United States: the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO).
4. Chamber of commerce: A nonprofit organization of local businesses formed to promote their interests.
· The typical chamber sponsors activities ranging from educational programs to lobbying for favorable business legislation.
5. Professional association: Nonprofit organization of professional or specialized workers seeking to improve working conditions, skill levels, and public perception of its profession. Ex. The American Medical Association (AMA).
Free Enterprise
Notes by Ale
Free enterprise: capitalistic economy in which competition is allowed to flourish with a minimum of government interference. In other words is the unhindered use of privately owned resources to earn profits, this is different than capitalism because capitalism stands for the private ownership of resources. It is less regulated.
Characteristics:
· Private property rights: people may control their possessions as they wish. Gives people the incentive to work, save, and invest. They can keep any rewards they earn. Ex: copyrights, trademarks, etc.
· Profit motive: people and organizations may improve their material well-being by making money. It is the responsible characteristics that make a free enterprise system grow. If they do well they can earn a lot. If it goes wrong they can loose part of their investment.
Free enterprise: capitalistic economy in which competition is allowed to flourish with a minimum of government interference. In other words is the unhindered use of privately owned resources to earn profits, this is different than capitalism because capitalism stands for the private ownership of resources. It is less regulated.
Characteristics:
· Private property rights: people may control their possessions as they wish. Gives people the incentive to work, save, and invest. They can keep any rewards they earn. Ex: copyrights, trademarks, etc.
· Profit motive: people and organizations may improve their material well-being by making money. It is the responsible characteristics that make a free enterprise system grow. If they do well they can earn a lot. If it goes wrong they can loose part of their investment.
Wages & Labor Disputes
Notes by Sasha
Determining Wages:
Skill Levels:
1. Unskilled Level: Not trained for machines and equipment
2. Semiskilled level: operate machines with minimum training.
3. Skilled labor: trained and need little supervision
4. Professional labor: a lot of training, education and skills.
Theories:
1. Market theory: rely on supply and demand.
2. Negotiated Theory: based on bargaining strength of organized labor.
3. Signaling theory: employers pay more for highly educated people.
How to resolve Labor disputes:
Resolution:
1. Collective bargaining: negotiation between labor and management over pay, benefits, working hours, etc.
2. Mediation: bring in neutral 3rd party to resolve disputes.
3. Arbitration: both sides/parties agree to place disputes before 3rd party which make the final decision.
4. Fact-Finding: 3rd party collects facts about dispute and gives recommendations.
Determining Wages:
Skill Levels:
1. Unskilled Level: Not trained for machines and equipment
2. Semiskilled level: operate machines with minimum training.
3. Skilled labor: trained and need little supervision
4. Professional labor: a lot of training, education and skills.
Theories:
1. Market theory: rely on supply and demand.
2. Negotiated Theory: based on bargaining strength of organized labor.
3. Signaling theory: employers pay more for highly educated people.
How to resolve Labor disputes:
Resolution:
1. Collective bargaining: negotiation between labor and management over pay, benefits, working hours, etc.
2. Mediation: bring in neutral 3rd party to resolve disputes.
3. Arbitration: both sides/parties agree to place disputes before 3rd party which make the final decision.
4. Fact-Finding: 3rd party collects facts about dispute and gives recommendations.
Marginal Cost & Analysis
Notes by Rudy
· Short run- small amount of time in which only one input can be changed.
· Long run- long period of time when multiple input variables can be changed.
· Total product- how many products are made.
· Total cost- sum of fixed and variable costs, or how much is the cost of production.
· Marginal product- the change in output that results from adding one more input.
· Marginal cost- the change in cost that results from producing one more unit of output.
· Break-even point- when total cost equals total revenue.
· Stages of Production
o Increasing marginal returns- marginal product increases. Has a big, positive slope.
o Decreasing marginal returns- marginal product decreases. Has a smaller, positive slope.
o Negative marginal returns- marginal product is negative. Has a negative slope.
· Short run- small amount of time in which only one input can be changed.
· Long run- long period of time when multiple input variables can be changed.
· Total product- how many products are made.
· Total cost- sum of fixed and variable costs, or how much is the cost of production.
· Marginal product- the change in output that results from adding one more input.
· Marginal cost- the change in cost that results from producing one more unit of output.
· Break-even point- when total cost equals total revenue.
· Stages of Production
o Increasing marginal returns- marginal product increases. Has a big, positive slope.
o Decreasing marginal returns- marginal product decreases. Has a smaller, positive slope.
o Negative marginal returns- marginal product is negative. Has a negative slope.
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