Term
| In the short run if marginal product is at its maximum then... |
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Definition
| Marginal cost is at its minimum |
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Term
| If 40 units are sold at a price of $40 and 60 units are sold at a price of $20, then the elasticity of demand calculated using the midpoint formula is... |
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Definition
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Term
| When there are a few number of substitutes available for a good, demand tends to be... |
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Definition
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Term
| If a firm doubles all its inputs in the long run and it finds its average cost of production has decreased, then it has... |
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Definition
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Term
| If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are... |
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Definition
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Term
| If a firm raised its price and found total revenue rose, then the demand for its product is... |
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Definition
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Term
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Definition
| Price per unit times quantity sold |
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Term
| A perfectly elastic demand curve is... |
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Definition
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Term
| If, as the industry expands, a competitive industry can supply larger quantities at a lower long-run equilibrium price, it is... |
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Definition
| A decreasing-cost industry |
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Term
| If another worker adds nine units of output to a group of workers who had an average product of seven units, then the average product of labor... |
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Definition
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Term
| Cross-price elasticity of demand is calculated as... |
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Definition
| Percentage change in quantity demanded of one good divided by percentage change in price of a different good |
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Term
| If 20 units are sold at a price of $50 and 30 units are sold at a price of $40, then the elasticity of demand calculated using the midpoint formula is... |
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Definition
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Term
| Economic cost of production differ from those in accounting in that... |
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Definition
| Economics adds the opportunity cost for a firm using its own resources |
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Term
| When a firm changes its price, the change in total revenue... |
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Definition
| Depends on the elasticity of demand value and the direction of the price change |
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Term
| When a firm changes its price, the change in total revenue... |
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Definition
| Depends on the elasticity of demand value and the direction of the price change |
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Term
| A firm knows when a technology it has adopted has been successful... |
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Definition
| When is can produce more output using the same inputs |
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Term
| Price inelastic supply occurs whenever the elasticity of supply value is... |
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Definition
| Positive and less than one |
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Term
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Definition
| Is more elastic in a long period of time than it is in a short period of time |
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Term
| When the average total cost is $16, the level of total cost is $800, then the number of units the firm is producing is.... |
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Definition
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Term
| A perfectly competitive firm breaks even at a price... |
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Definition
| Equal to minimum average total cost |
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Term
| A very large number of small sellers who sell identical products implies... |
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Definition
| The inability of one seller to influence price |
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Term
| If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could... |
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Definition
| Change price a little bit and observe what happens to total revenue |
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Term
| Both buyers and sellers are price takers in a perfectly competitive market because... |
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Definition
| Each buyer and seller is too small relative to others to independently affect the market price |
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Term
| If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is... |
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Definition
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Term
| In the long run, a perfectly competitive market will... |
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Definition
| Supply whatever amount consumers demand at a price determined by the minimum point on the typical firms' average total cost curve |
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Term
| An individual seller in perfect competition will not sell at a price higher than the market price because... |
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Definition
| Quantity demanded would be zero, the seller would not be able to sell anything, and buyers would buy from other sellers |
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Term
| Both individual buyers and sellers in perfect competition... |
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Definition
| Have to take the market price as given |
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Term
| The price elasticity of demand is equal to... |
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Definition
| The percentage change in quantity demanded divided by the percentage change in price |
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Term
| If all we know is all workers' marginal product, then total and average product can be found by... |
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Definition
| Summing the marginal values to find the total and dividing it by the number of workers to get the average |
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