question
Production Efficient
answer
Producing a combination of goods at the lowest cost
question
Complements
answer
Goods used together
question
price elasticity of demand
answer
% change in quantity demanded / % change in price
question
comparative advantage
answer
One person can produce something at a lower cost than another, given the same resources
question
Opportunity Cost
answer
The Net Value of the next best alternative
question
Technology
answer
A method of production
question
Endogenous Variable
answer
a variable that is determined within the model
question
marginal rate of substitution
answer
The rate at which the consumer is willing to substitute between two goods to remain indifferent
question
Income Elasticity of Demand
answer
% Change in quantity demanded/ % change in M
question
Short Run
answer
At least one input is fixed
question
Total Fixed Cost
answer
Cost that does not change with output
question
Oligopoly
answer
Industry structure characterized by a few firms
question
Minimum Efficient Scale
answer
Smallest quantity at which the long run average cost curve is minimized
question
Homogeneous Product
answer
All firms produce exactly the same product
question
Marginal Product of Labor
answer
Change in Quantity/ Change in Labor
question
Implicit Cost
answer
The opportunity cost of using a resource owned by the firm
question
Equilibrium
answer
No economic agent has an incentive to change their behavior
question
market equilibrium
answer
quantity demanded equals quantity supplied
question
Price Discrimination 1st Degree
answer
Firm changes max willingness to pay
question
Price Discrimination 2nd Degree
answer
Different Prices for different amounts
question
Price Discrimination 3rd Degree
answer
Different Prices for different groups of people
question
Consumer Surplus
answer
Difference between maximum willingness to pay and the price
question
Producer Surplus
answer
Actual Price youre willing to sell it for minus the price you actually sell it for
question
Allocative Efficiency
answer
Maximizing consumer and producer surplus
question
Marginal Revenue equals?
answer
Marginal Cost
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
