| A | B |
|---|
| Cost | Expenditures needed to achieve a business goal |
| Fixed Cost | Costs incured, even if the plant is idle |
| Variable Cost | Cost that changes when the business rate of operations changes |
| Total Cost | the sum of all fixed and total costs |
| Marginal Cost | the difference in cost it takes to produce one more unit. |
| overhead | The total of all of your fixed costs |
| Total Revenue | all of the earnings from selling units. |
| Marginal Revenue | difference in earning from selling an additional unit |
| Marginal Analysis | Used to compare extra benefits to extra costs in calculating production |
| Break Even Point | total output a business needs to sell to cover all of its costs |
| Profit Maximizing Quantity of Output | point in which marginal cost and marginal revenue are equal. (ideal profit) |
| Economic Model | Set of assumptions used to analyze behavior and predict outcomes |
| Market Equilibrium | System where prices are relatively stable and quanity demanded and supplied are equal |
| surplus | having MORE than demanded |
| Shortage | vaving LESS than demanded |
| Equilibrium Price | This is the cost of a product when supply of the product meets demand of the product. |
