- Marginal cost = change in total cost as a result of the production of 1 more unit
- Variable cost = a cost that changes at the level of output changes
Economic inactivity = when someone is of working age but is not willing or not able to work
Unemployment = when someone who is willing and able to work and of working age, cannot
find a job
Profit satisficing: divorce of ownership from control / principal agent problem
- e,g making enough product to keep shareholders happy
- may have other objectives
- may incur long run profit maximisation
- Variable cost = a cost that changes at the level of output changes
Economic inactivity = when someone is of working age but is not willing or not able to work
Unemployment = when someone who is willing and able to work and of working age, cannot
find a job
Profit satisficing: divorce of ownership from control / principal agent problem
- e,g making enough product to keep shareholders happy
- may have other objectives
- may incur long run profit maximisation
