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e-commerce:electronic business or exchange conducted over the internet.

fixed costs: costs of production that do not change when output changes.

overhead: broad category of fixed costs that includes interests, rent, taxes, and executive salaries.

variable cost: production cost that varies as output changes; labor, energy, raw materials.

total cost: variable plus fixed cost, all costs associated with production.

marginal costs: extra costs of producing one additional unit of production.

average revenue: average price that every unit of output sells for.

total product: total product or production by a firm.

marginal product: extra output due to the addition of one or more unit of input

stages of production: phases of production that consist of increasing , decreasing, and negative returns

contributes: gives time, money or effort.

diminishing returns: stage o production where output increases at a decreasing rate as more units of variable input are added.

total revenue: total amount earned by a firm from the sale of its products; average price of a good sold times the quantity sold

marginal revenue: extra revenue from the sale of one additional unit of output.

generates: produces or brings into being.

profit-maximizing quantity of profit: level of production where the marginal cost is equal to marginal revenue.

break-even-point: production level where total cost equals total revenue; production needed if the firm is to recover its cost.

market supply curve: supply curve that shows the quantities offered at various prices by all firms that sell the same product in a given market.

quantity supplied: amount offered for sale at a given price; point on the supply curve.

change in quantity supplied: change in the amount offered for sale in response to a change in movement along the supply curve.

change in supply: different amounts offered for sale at each and every possible price in the market; shift of the supply curve.

supply: amount of a product offered for sale at all possible prices in a market

law of Supply: principle that more will be offered for sale at higher prices than at lower prices.

various: different

supply schedule: a table showing the quantities produced or offered for sale at each and every possible price in the market.

supply curve: a graph that shows the quantities supplied at each and every possible price in the market.

supply elasticity: responsiveness of quantity supplied to a change in price.

production function: graphic portrayal showing how a change in the amount of a single variable input affects total output.

hypothetical: assumed but not proven.

short run: production period so short that only variable inputs (usually labor) can be changed.

long run: production period long enough to change amount of variable and fixed inputs used in production.

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