Average fixed cost In economics, average fixed cost (AFC) is the fixed costs of production (FC) divided by the quantity (Q) of output produced.
Baumol's cost disease Baumol's cost disease (also known as the Baumol Effect) is a phenomenon described by William J. Baumol and William G. Bowen in the 1960s.
Capacity utilization Capacity utilization is the extent to which an enterprise or a nation actually uses its installed productive capacity.
Capitalist mode of production In Karl Marx's critique of political economy and subsequent Marxian analyses, the capitalist mode of production refers to one of the systems of organizing production and distribution within capi...
Choice of techniques The choice of techniques is an area of economics in which the question of the appropriate capital or labour-intensity of the method of production of goods is discussed.
Cost driver A cost driver is the unit of an activity that causes the change in activity's cost.
Cost-of-production theory of value In economics, the cost-of-production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it.
Cost-performance ratio The cost-performance ratio is the scale of what the product costs as opposed to its effectiveness.
Detailed division of labor Detailed division of labor, one of the two aspects of the division of labor, is where the labor required for one product is distributed between many people, each producing a part of the final pr...
Diminishing returns In economics, diminishing returns (also called diminishing marginal returns) is the decrease in the marginal (per-unit) output of a production process as the amount of a single factor of p...
Diseconomies of scale Diseconomies of scale are the forces that cause larger firms and governments to produce goods and services at increased per-unit costs.
Diseconomy of scale Diseconomies of scale are the forces that cause larger firms and governments to produce goods and services at increased per-unit costs.
Division of labour The division of labour is the specialization of Labour economics who perform specific tasks and roles.
Division of work Division of labour is the specialisation of cooperative labour in specific, circumscribed tasks and like roles.
Economic batch quantity Economic batch quantity (EBQ), also called "optimal batch quantity" or economic production quantity, is a measure used to determine the quantity of units that can be produced at minimum average ...
Economic order quantity Economic order quantity is the order quantity that minimizes total inventory holding costs and ordering costs.
Economic production quantity Economic Production Quantity model (also known as the EPQ model) determines the quantity a company or retailer should order to minimize the total inventory costs by balancing the inventory holdi...
Economic region of production In economics, the economic region of production is an offshoot of the theory of production function with two variables.
Economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasi...
Factor price In economic theory, the price of a finished item affects the factors of production, the various costs and incentives of producing it, so as to 'attract' it toward a theoretical Factor price.
Fixed cost In economics, fixed costs, indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business.
Fordism Fordism, named after Henry Ford, is a notion of a modern economic and social system based on an industrialized and standardized form of mass production.
Foundations of Economic Analysis Foundations of Economic Analysis is a book by Paul A. Samuelson published in 1947 (Enlarged ed., 1983) by Harvard University Press.
Fragmentation (economics) In economics, fragmentation means organization of production in which different stages of production are divided among different suppliers that are located in different countries.
Hicks-neutral technical change A Hicks-neutral technical change is a change in the production function of a business or industry which satifies certain economic neutrality conditions.
HMI quality HMI Quality: The quality of the Human-Machine Interaction is a primary concern of usability engineering.
Ideal firm size The ideal firm size is the theoretically most competitive size for any company, in a given industry, at a given time, which should ideally correspond with the highest possible per-unit profit.
Indirect costs Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product).
Industrial Production Index The Industrial Production Index (IPI) is an economic indicator which measures real production output, which includes manufacturing, mining, and utilities.
Industrial production index The Industrial Production Index (IPI) is an economic indicator published by the Federal Reserve Board of the United States that measures the real production output of manufacturing, mining, and ...
Intermediate good Intermediate goods or producer goods or semi-finished products are goods used as inputs in the production of other goods, such as partly finished goods.
Isocost In economics an isocost line shows all combinations of inputs which cost the same total amount.
Isoquant In economics, an isoquant (derived from quantity and the Greek word iso, meaning equal) is a contour line drawn through the set of points at which the same quantity of output is produced while c...
Labor and material productivity Labor and material productivity, including labor output and material output norms, is about standard output norms related to building construction precisely for labor and material.
Land (economics) In economics, land comprises all naturally occurring resources whose supply is inherently fixed.
Learning-by-doing (economics) Learning-by-doing is a concept within economic theory by which productivity is achieved through practice, self-perfection and minor innovations.
Limiting factor A limiting factor limits the growth or development of an organism, population, or process.
Long run and short run In microeconomics, the long run is the conceptual time period in which there are no fixed factors of production as to changing the output level by changing the capital stock or by entering or le...
Margin (economics) In economics, a margin is a set of constraints conceptualised as a border.
Marginal cost In economics and finance, marginal cost is the change in the total cost that arises when the quantity produced has an increment by unit.
Marginal cost of capital schedule Marginal Cost of Capital (MCC) Schedule is a graph that relates the firm’s weighted average cost of each dollar of capital to the total amount of new capital raised.
Marginal product In economics and in particular neoclassical economics, the marginal product or marginal physical product of an input is the extra output that can be produced by using one more unit of the input, assuming that the quantities of no other inputs to production change.
Marginal product of labor In economics, the marginal product of labor (MPL) is the change in output that results from employing an added unit of labor.
Marginal rate of technical substitution In economic theory, the Marginal Rate of Technical Substitution - or Technical Rate of Substitution - is the amount by which the quantity of one input has to be reduced when one extra unit...
Means of production In economics and sociology, the means of production refers to physical, non-human inputs used in production; that is, the "means of production" includes capital assets used to produce wealth, su...
Measurement in economics The measures used in economics are physical measures, nominal price value measures and fixed price value measures.
Outline of industrial organization Industrial organization – describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions.
Partial productivity Measurement of partial productivity refers to the measurement solutions which do not meet the requirements of total productivity measurement, yet, being practicable as indicators of total produc...
Peer production Peer production (also known by the term mass collaboration) is a way of producing goods and services that relies on self-organizing communities of individuals who come together to produce a shar...
Peters Rose «Peters Rose» – a term for a graphic matrix suggested by Arno Peters for the exact determination of the value of any product or service.
Post-Fordism Post-Fordism is the name given by some scholars to what they describe as the dominant system of economic production, consumption and associated socio-economic phenomena, in most industrialized c...
Price/performance ratio In economics and engineering, the price/performance ratio refers to a product's ability to deliver performance, of any sort, for its price.
Producer's risk Producer's risk is the probability that a good product will be rejected as a bad product by the consumer.
Product Pipeline A product pipeline is a series of products developed and sold by a company, ideally in different stages of their life cycle.
Production (economics) Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).
Production function In economics, a production function relates physical output of a production process to physical inputs or factors of production.
Production-possibility frontier In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, i...
Productive capacity Productive capacity is a term used to define maximum possible output of an economy.
Productivity Productivity is the ratio of output to inputs in production; it is an average measure of the efficiency of production.
Productivity Alpha The term productivity alpha describes above benchmark productivity resulting from operations that have been optimized through the use of technology.
Productivity improving technologies (historical) Productivity improving technologies are those technologies that lowered the traditional factors of production of land, labor capital, materials and energy, that go into the production of economi...
Productivity model Productivity in economics is the ratio of what is produced to what is required to produce.
Productivity world Productivity World is a term used by William Easterly to describe that relative productivity among Factors of production is the same in the sectors across countries, but rich countries have ab...
Programming productivity Programming productivity refers to a variety of software development issues and methodologies affecting the quantity and quality of code produced by an individual or team.
Ramp up Ramp up is a term used in economics and business to describe an increase in firm production ahead of anticipated increases in product demand.
Rationalization (economics) In economics, rationalization is an attempt to change a pre-existing ad hoc workflow into one that is based on a set of published rules.
Returns to scale In economics, returns to scale and economies of scale are related terms that describe what happens as the scale of production increases in the long run, when all input levels including phy...
Robinson Crusoe economy A Robinson Crusoe economy is a simple framework used to study some fundamental issues in economics.
Scheduling (production processes) Scheduling is an important tool for manufacturing and engineering, where it can have a major impact on the productivity of a process.
Sectoral output Sectoral output for an industry or combination of industries ("sector") is the value of the sector's gross output minus the value of shipments within the sector from one establishment to another.
Semi variable cost Semi-variable cost is an expense which contains both a fixed-cost component and a variable-cost component.
Semi-variable cost Semi-variable cost is an expense which contains both a fixed-cost component and a variable-cost component.
Split-off point In the context of production, a split-off point is the point at which joint products appear in the production process.
Synergy Synergy is the interaction of multiple elements in a system to produce an effect different from or greater than the sum of their individual effects.
The labor problem "The Labor Problem" is an economics term widely used toward the turn of the twentieth century with various applications.
Theory of Non Constraint Theory Of Non-Constraint is a means of identifying free time available in Coupled Manufacturing production lines.
Theory of non-constraint The theory of non-constraint or freetime theory is a means of identifying free time available in coupled manufacturing production lines.
Total factor productivity In economics, total-factor productivity (TFP), also called multi-factor productivity, is a variable which accounts for effects in total output not caused by traditionally measured inpu...
Transaction cost In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange (restated: the cost of participating in a market).
Unexpected events Conventional systems engineering methodologies do not provide guidance on how to reduce the risks of unexpected events.
Use error The term Use Error has recently been introduced to replace the commonly-used terms human error and user error.
User control Systems are operated by controls, such as buttons, mice, switches, levers, dials, etc.
Value and Capital Value and Capital is a book by the British economist John Richard Hicks, published in 1939.
Variable cost Variable costs are costs that change in proportion to the good or service that a business produces.
Weak axiom of cost minimization In economics, the weak axiom of cost minimization (WACM) provides a non-parametric test of cost minimization, which can be applied only when both input price and quantity data are availabl...