Question: total cost

Answer: the market value of the inputs a firm uses in production

Question: profit

Answer: total revenue minus total cost

Question: explicit costs

Answer: Input costs that require an outlay of money by the firm

Question: implicit costs

Answer: input costs that do not require an outlay of money by the firm

Question: economic profit

Answer: total revenue minus total cost, including both explicit and implicit costs

Question: accounting profit

Answer: total revenue minus total explicit cost

Question: production function

Answer: the relationship between the quantity of inputs used to make a good and the quantity of output of that good

Question: marginal product

Answer: the increase in output that arises from an additional unit of input

Question: diminishing marginal product

Answer: the property whereby the marginal product of an input declines as the quantity of the input increases

Question: fixed costs

Answer: costs that do not vary with the quantity of output produced