Variability (Page 151)Extent to which possible outcomes of an uncertain event may differ Variable(VC)(Page 206)Cost that varies as ouput varies Variable profit (page 372)Sum of profits on each incremental unit produced by a firm;i.e.,profi ignoring fixed costs. Vertical integration (Page 613)Organizational form in which a firm contains several divisions, with some producing parts and components that others use to produce finished products. Welfare economics (page 574)Normative evaluation of markets and economic policy Welfare effeets(page 289)Gains and losses caused by government intervention in the market. Winner s curse(page 494)Situation in which the winner of a common-.value auction is worse off as a consequence of overestimating the value of the item and thereby overbidding (page 273)Afirm is earning a normal retu onits investment-that i is doing as well as it could by investing its money elsewhereVariability (Page 151) Extent to which possible outcomes of an uncertain event may differ Variable cost (VC) (Page 206) Cost that varies as output varies. Variable profit (page 372) Sum of profits on each incremental unit produced by a firm; i.e., profit ignoring fixed costs. Vertical integration (Page 613) Organizational form in which a firm contains several divisions, with some producing parts and components that others use to produce finished products. W Welfare economics (page 574) Normative evaluation of markets and economic policy Welfare effects (page 289) Gains and losses caused by government intervention in the market. Winner s curse (page 494) Situation in which the winner of a common-.value auction is worse off as a consequence of overestimating the value of the item and thereby overbidding. Z Zero economic profit (page 273) A firm is earning a normal return on its investment-i.e., that it is doing as well as it could by investing its money elsewhere