Fixed costs – production
costs that are not related to the level of production; also referred to as overhead costs.
Geographical Information System
(GIS) – a computer mapping system that links databases of geographically-based
information to maps that display the information. For more information, see www.esri.com.
Market failure – the
inability of markets to reflect the full social costs or benefits of a good, service, or state of
the world. Therefore, markets will not result in the most efficient or
beneficial allocation of resources.
Net economic benefit – the net
economic benefit is the total economic benefit received from a change in the state of a
good or service, measured by the sum of consumer
surplus plus producer surplus, less any costs associated with the change.
Net Present value – the current
value of net benefits (benefits minus costs) that occur over time. A discount rate is used to reduce future benefits and costs to their present time equivalent.