Term
What is Total Revenue?
----------- |
|
Definition
Price*Quantity
------------ |
|
|
Term
What is Total Cost?
------------- |
|
Definition
Average Total Cost*Quantity
or
Total Variable Cost + Total Fixed Costs
------------------ |
|
|
Term
What is Average Total Cost?
----------- |
|
Definition
Total Cost/Quantity
-------- |
|
|
Term
What is Price or Average Revenue?
---------- |
|
Definition
Total Revenue/ Quantity
---------- |
|
|
Term
What is the intuition of loss minimization?
------------- |
|
Definition
The loss from operating is lower than the loss from shutting down aka Losses from the firm are less than Total Fixed Costs of the firm, and it's revenue covers its Total Variable Costs.
--------------- |
|
|
Term
What is Total Variable Cost?
------------- |
|
Definition
Total Cost - Total Fixed Costs
-------- |
|
|
Term
What is Total Fixed Costs?
------------- |
|
Definition
Total Cost - Total Variable Costs
---------- |
|
|
Term
What is the Total Revenue Area of Loss Minimization in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Total Cost Area of Loss Minimization in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Total Variable Cost Area of Loss Minimization in a Perfectly Competitive Firm?
----------- |
|
Definition
|
|
Term
What is the Total Fixed Cost Area of Loss Minimization in a Perfectly Competitive Firm?
----------- |
|
Definition
|
|
Term
What is the Economic Profit Area of Loss Minimization in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Total Revenue Area of Shutdown in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Total Cost Area of Shutdown in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Economic Profit Area of Shutdown in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Total Variable Cost Area of Shutdown in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the Total Fixed Cost Area of Shutdown in a Perfectly Competitive Firm?
--------------- |
|
Definition
|
|
Term
What is the key to the Long Run
-------- |
|
Definition
New Firms may enter and old firms may exit.
----------------- |
|
|
Term
When is profit maximized?
-------------- |
|
Definition
When marginal revenue equals marginal cost
------------- |
|
|
Term
Are Quantity Demanded and Quantity Supplied Direct Variables or Inverse Variables?
--------------- |
|
Definition
Inverse Variable
----------- |
|
|
Term
Is changing the number of firms is a demand factor or a supply factor?
---------- |
|
Definition
|
|
Term
When is the only time Perfectly Competitive Firms Break Even?
-------------- |
|
Definition
|
|
Term
What is Productive Efficiency?
------- |
|
Definition
Price is equal to Minimum Average Total Costs.
------------
Firms use the most efficient methods, as they do not waste resources.
------------ |
|
|
Term
Long Run perfect competition guarantees what?
----------- |
|
Definition
Firms use the most efficient methods, as they do not waste resources.
------------
Price = Minimum Average Total Costs
----------
Price = Marginal Costs
--------- |
|
|
Term
What indicates Allocative Efficiency?
----------------- |
|
Definition
Price=Marginal Costs
---------- |
|
|
Term
What is Allocative Efficiency?
----------- |
|
Definition
Resources are allocated Efficiently
------------- |
|
|
Term
If price > Marginal Costs then?
---------- |
|
Definition
The firm needs to allocate more resources
--------- |
|
|
Term
If price < Marginal Costs then?
----------- |
|
Definition
The firm needs to allocate less
----------- |
|
|
