by any given combination of inputs.
economic profit
The difference between the revenues received from the sale of output and
the opportunity cost of the inputs used to make the output. Negative
economic profits are called economic losses.
short run
A period of time in which the quantity of some inputs cannot be changed.
fixed factor
An input whose quantity cannot be changed in the short run.
variable factor
An input whose quantity can be changed over the time period under
consideration.
long run
A period of time in which all inputs may be varied, but the existing
technology of production cannot be changed.
total product (TP)
Total amount produced by a firm during some time period.
average product (AP)
Total product divided by the number of units of the variable factor used
in its production.