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Situation
Jake and Sally have dated for several months.They have talked briefly about marriage and more extensively about living together.They have a strong sexual attraction to each other and describe their relationship as passionate.Sally feels very lucky to have met someone like Jake and wants to spend all of their free time together.She is even willing to take up Jake's hobbies so that they can be together all of the time.Lately,Sally has developed an intense jealousy over Jake spending time with his friends from work.Jake cares for Sally but wants to maintain some degree of freedom.
-Sally's jealousy is an indicator of
Average Costs
The total costs of production divided by the number of goods produced, indicating the cost per unit of output.
Marginal Productivity
The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.
Fixity
In economics, refers to the inelasticity or immobility of certain factors, like land or capital, which can limit responsiveness to changes in market conditions.
Long Run
A period of time sufficient for all adjustments to be made in an economy or market, considering all possible changes in production.
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