| A | B |
|---|
| Marginal product | Total output of a product. |
| Marginal product | The change in output generated by adding one more unit of input. |
| Law of diminishing returns | The effect that varying the level of an input has on total and marginal product. |
| Fixed Costs | Production costs that don’t change no matter how many goods are made. |
| Depreciation | Lessening of value, on each and every capital good. |
| Overhead | A company’s total fixed costs. |
| Variable costs | Change as the level of output changes. Variable costs include: raw materials and wages. |
| Total costs | The sum of the fixed and variable production costs. |
| Marginal costs | The additional costs of producing one more unit of output. |
