Microeconomics Final Exam Part 2 - Assignment Essays %

question

Area between Ssocial and Sinternal and under Dinternal (B)

answer

Deadweight loss associated with market equilibrium

question

Club good

answer

A good that is nonrival and excludable

question

Free rider problem

answer

A major reason why public goods are not supplied by the market

question

External cost

answer

Cost of an activity paid for by a third party

question

Externalities

answer

Costs or benefits of a market activity that affect a third party

question

Implicit costs

answer

Same as opportunity costs

question

Accounting profit

answer

Total revenue - explicit costs

question

Average fixed costs continually decrease

answer

In the short run,

question

Economic profit

answer

Total revenue - (explicit costs + implicit costs)

question

Marginal cost curve is below average total cost curve

answer

When the average total cost curve is downward sloping

question

Minimum average total cost

answer

Firms will break even if the price they charge is equal to

question

P=ATC

answer

Zero economic profit

question

Attempt to maximize profits

answer

Firms in every market structure

question

As long as the firm is operating

answer

Marginal cost curve is the short run supply curve

question

A firm expands output until marginal revenue is equal to marginal cost

answer

Profit maximization occurs when

question

Many buyers and sellers, similar products, easy entry into the market

answer

Three main characteristics of a competitive market

question

In the long run, both earn zero economic profit

answer

One thing that makes monopolistic competition similar to perfect competition is that

question

Would most likely remain in the industry

answer

Monopolistically competitive firms that are earning zero economic profit

question

Economies of scale, problems raising capital, control of resources

answer

Three natural barriers to entry

question

Try to maximize profits

answer

Both monopolies and competitive firms

question

There are many small firms in the industry

answer

One critical characteristic of monopolistic competition is

1 of 21

question

Area between Ssocial and Sinternal and under Dinternal (B)

answer

Deadweight loss associated with market equilibrium

question

Club good

answer

A good that is nonrival and excludable

question

Free rider problem

answer

A major reason why public goods are not supplied by the market

question

External cost

answer

Cost of an activity paid for by a third party

question

Externalities

answer

Costs or benefits of a market activity that affect a third party

question

Implicit costs

answer

Same as opportunity costs

question

Accounting profit

answer

Total revenue - explicit costs

question

Average fixed costs continually decrease

answer

In the short run,

question

Economic profit

answer

Total revenue - (explicit costs + implicit costs)

question

Marginal cost curve is below average total cost curve

answer

When the average total cost curve is downward sloping

question

Minimum average total cost

answer

Firms will break even if the price they charge is equal to

question

P=ATC

answer

Zero economic profit

question

Attempt to maximize profits

answer

Firms in every market structure

question

As long as the firm is operating

answer

Marginal cost curve is the short run supply curve

question

A firm expands output until marginal revenue is equal to marginal cost

answer

Profit maximization occurs when

question

Many buyers and sellers, similar products, easy entry into the market

answer

Three main characteristics of a competitive market

question

In the long run, both earn zero economic profit

answer

One thing that makes monopolistic competition similar to perfect competition is that

question

Would most likely remain in the industry

answer

Monopolistically competitive firms that are earning zero economic profit

question

Economies of scale, problems raising capital, control of resources

answer

Three natural barriers to entry

question

Try to maximize profits

answer

Both monopolies and competitive firms

question

There are many small firms in the industry

answer

One critical characteristic of monopolistic competition is

Order an Essay Now & Get These Features For Free:

Place an Order