question
what's the goal as a producer?
answer
to maximize profit
question
Marginal product (MP)
answer
change total product / change in labor input
question
- Average Product (AP)
answer
total product / units of labor
question
How many market structures are there?
answer
four
question
price per unit to a buyer equals
answer
average revenue to a seller
question
pure competition
answer
An industry where a large number of firms producing identical products and new firms can enter or exit the industry very easily.
question
a purely competitive firm's average-revenue schedule a.k.a
answer
its demand schedule.
question
economic profit formula
answer
profit = (P-ATC) x Q or Output
question
at what point can a firm minimize their costs?
answer
when average variable cost is at it's lowest
question
a firm will be indifferent to shutting down if
answer
price is equal to minimum average cost
question
what factors alter costs and shift short run supply curve to a new location?
answer
technology
prices of variable inputs
prices of variable inputs
question
In the short run, a purely competitive firm can maximize its economic profit (or minimize its loss) by adjusting its..
answer
output
question
what are the four basic market structures
answer
Pure monopoly
Pure competition
Oligopoly
Monopolistic competition
Pure competition
Oligopoly
Monopolistic competition
question
economic cost
answer
the payment that must be made to obtain and retain the services of a resource; implicit costs + explicit cost
question
explicit cost
answer
spending $ to get a resource, outsourcing
question
implicit cost
answer
internal, no $ needed; opportunity cost by using resources firm already has rather than what's on the market
question
accounting profit
answer
total revenue (TR) - explicit costs; net income
question
normal profit
answer
the $ you would have gotten if you used your entrepreneurial skills somewhere else;
question
economic profit
answer
above normal profit; revenue - explicit costs - implicit costs
question
economies of scale
answer
average total costs decreases as output increases; downsloping on ATC curve
question
diseconomies of scale
answer
ATC increase as output (Q) increases which causes it to be more difficult to control a firm's operations
question
constant returns to scale
answer
output=ATC, they're increase in proportion with each other causing it to be horizontal on long run atc curve
question
minimum efficient scale (MES)
answer
lowest level of output; long run avg. costs are minimized
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
