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Diminishing Returns
An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.
Cobb-Douglas Production Function
Production function of the form q = AK^aL^b, where q is the rate of output, K is the quantity of capital, and L is the quantity of labor, and where A, a, and b are constants.
Optimal Input Demands
The combination of inputs that minimizes the cost of producing a given output or maximizes output for a given cost.
Expenditures
Money spent on goods, services, or other expenses.
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