Examlex
Perform the indicated operations and simplify the result. Leave the answer in factored form.
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Production Function
An equation that describes the maximum amount of output that can be derived from a set number of inputs.
Diminishing Marginal Product
The principle that says the marginal product of a factor of production decreases as the quantity of the factor is increased, holding all else constant.
Economies of Scale
Cost advantages reaped by companies when production becomes efficient, as the scale of production and the cost per unit of production decrease.
Average Total Cost
The total cost of production divided by the number of units produced, representing the per-unit cost of production.
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