Ch. 7 Vocab

3. actual payments made by firms such as wages or rent
6. period of time during which all factors are variable
10. market structure where a few firms make similar or identical products
11. private business with one owner
14. total revenue less explicit and implicit costs
15. combines inputs of labor, capital, land, and other materials to produce outputs
17. labor or raw materials are usually considered this type of input
19. machines, equipment, and buildings used to produce a product
20. one of the factors of production that involves the skills and decisions of the person creating a business
21. a situation where many firms produce an identical product
22. mathematical relationship reflecting relationship between inputs and outputs
23. market structure where many firms produce similar products

1. inputs that can’t easily be changed in a short period of time
2. total revenue less explicit costs
4. price of the product times quantity sold
5. as variable inputs increase, marginal products tends to __________________in the long run
7. subtracting total cost from total revenue yields
8. one firm producing distinct products
9. opportunity cost of using resources a firm already owns
12. period of time during which at least some factors of production are fixed
13. as variable inputs increase from zero, marginal product tends to initially __________________
16. change in total product divided by change in labor
18. any process or service that creates value (e.g. manufacturing, transportation, retail sales, etc.)