Mass Production: Definition, Examples, Pros & Cons
Mass production is the continuous production of standardized products, usually along an assembly line.
Production Theory
Production theory looks at how businesses can most effectively combine labor and capital to achieve maximum efficiency. This can help firms increase output whilst also reducing output, thereby increasing profits.
Diseconomies of Scale: Definition, Types & Examples
It is an economic term that defines the trend for average costs to increase alongside output.
Economies of Scale: Definition, Types & Examples
Economies of scale occur when a business benefits from the size of its operation. As a company gets bigger, it can benefit from a number of efficiencies.
Law of Diminishing Marginal Returns: Definition & Examples
Diminishing Marginal Returns occur when increasing production further results in lower levels of output.
Marginal Revenue: How to Calculate with Formula & Example
Marginal Revenue is the money a firm makes for each additional sale. So if a baker sells an additional loaf of bread for $2, then their marginal revenue is also $2.
Sunk Cost: What it is, Examples & Fallacy
A sunk cost is a payment that has been made but cannot now be recovered.
Variable Cost: Definition, Formula & Examples
We can define a variable cost as a cost that changes based on the output of the business.
Marginal Cost: How to Calculate, Formula & Examples
Marginal cost refers to the additional amount it costs to produce one extra good.
Factors of Production: Definition, 4 Factors & Examples
The factors of production are all the various elements that are required to come together to create a good.
Accounting vs Economic Profit
The main difference between accounting and economic profit is that economic profit includes implicit costs. Whilst accounting profits include the raw costs of doing business, economic profit includes the opportunity cost of employing those resources for an alternative use.
