| A | B |
|---|
| marginal product of labor | the change in output from hiring one additinal unit of labor |
| increasing marginal returns | a level of producitno in which the marginal product of labor increases as the number of workers increases |
| diminishing marginal returns | a level of production at which the marginal product of labor decreases as the number of workers increases |
| fixed cost | a cost that does not change, no matter how much of a good is produced |
| variable cost | a cost that rises or falls depending on the quantity produced |
| total cost | the sum of fixed costs plus variable costs |
| marginal cost | the cost of producing one or more unit of a good |
| marginal revenue | the additional income from selling one more unit of a good sometimes equal to price |
| average cost | the total cost divided by the quantity produced |
| operating cost | the cost of operating a facility such as a factory or a store |
