Examlex
Why is a written schedule important?
Implicit Cost
The monetary income a firm sacrifices when it uses a resource it owns rather than supplying the resource in the market; equal to what the resource could have earned in the best-paying alternative employment; includes a normal profit.
Law of Diminishing Returns
The economic principle stating that as one input variable is increased, there is a point at which the marginal gain in output begins to decrease, holding all other inputs constant.
Diseconomies of Scale
Diseconomies of scale occur when a firm's costs per unit increase as the scale of its output increases, often due to inefficiencies that arise from managing a larger organization.
Average Fixed Costs
Costs that do not change with the level of output and are spread over the units of output, thus decreasing per unit as production increases.
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