ECON 1000 Chapter Notes - Chapter 10: Job Satisfaction, Opportunity Cost, Economic Efficiency

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Steven Edwards

Document Summary

Economic profit: total revenue minus total cost, with total cost measured as the opportunity cost of production. Is the sum of the cost of using resources i. ii. Bought in the market place (could have bought different resources to produce some other good) Supplied by the firm"s owner (owner may supply both entrepreneurship and labour; return of entrepreneurship is profit) Economic depreciation: the change in the market value of capital over a given period. Normal profit: cost of entrepreneurship and an opportunity cost of production. Equaled to the return that an entrepreneur can expect to receive on the average working another job. Normal profit (the average profit of all entrepreneurs in this industry; not your revenue) Technology: any method of producing a good or service. Detailed designs of machines and layout of workplace. To produce more, the company must hire more resources (which increases costs and limits the increase in profit) Current and future buying plans of its customers.