Vocabulary

Trade- Offs: Alternatives that we when we choose one course of action over another.

Opportunity Cost: Next best alternative.

Production Possibility Graph (PPG): Shows alternative ways to use an economics resources.

Total Revenue: the total amount of money a firm receives from selling goods and service.

Variable Cost: a cost that raises or falls depending on how much is produced.

Fixed Cost: a cost that doesn't change no matter how much is produced.

Marginal Cost: the cost of producing one more unit of a good.