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Definition
| money cost, paying an empl. |
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| opportunity cost, time they could be making money. |
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| TR-(ec+implicitcost) (IC) |
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| cannot be changed in the short run |
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Term
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| quantity can be changed in short run/ everything becomes variable in long run |
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Term
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Definition
| relationship between quantity of inputs used to make a good and the quantity of an output good. |
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Definition
| the increase in and output of that good, from an additional unit of output |
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Definition
| the property where the marginal product of an input declines as the quantity of the input increases |
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| shut down when price is lower the AVC |
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Term
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Definition
| market value of the inputs a firm uses in production |
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Term
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Definition
| costs that do not vary with the Q of output produced |
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Term
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Definition
| fixed cost divided by the Q of output |
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Term
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Definition
| variable cost divded by the Q of output |
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Term
| why does tc curve get steeper as the amount produced increases |
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Definition
| diminishing marginal product |
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Term
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Definition
| the increase in TC that arises from an extra unit of production |
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Term
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Definition
| buyers and sellers in the market, everyone is a price taker, homogeneous product the product of all frims is identical, free entry and exit...productive resources are mobile, perfect information. |
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Term
| how does a profit maximizing pC firm decide how much output to produce? |
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Definition
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Term
| PC firms short run supply curve |
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Definition
| add the supplied by each firm in the market |
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Definition
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Definition
| can cause the long run supply curve to become perf elastic |
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Definition
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Term
| in the short run when firms can not recover its FC |
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Definition
| the firm will shut down temp if the price is less than AVC |
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Term
| Short run demand increase |
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Definition
| price raises and leads to profit |
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Term
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Definition
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Term
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Definition
| seller has some degree of monopoly power |
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Term
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Definition
| the seller must be able to seperate customers into 2 or more identifiable group |
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Term
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Definition
| seller must be able to prevent resale of the product among the groups |
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Term
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Definition
| price elasticity demand is different among the different types of buyers |
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Term
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Definition
| the seller partiotns ,market demand into farley large but not nessecarily equal size blocks |
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Term
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Definition
| perfect price disc. consumers pay the exact amount they are willing to pay for each quantity |
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Term
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Definition
| aspects of both, closer to pc |
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Term
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Definition
| large number of firms, relatively low or possibly zero barriers to entry(zero profit), product differentiation |
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Term
| ways to differentiate product |
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Definition
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Definition
| shifts to left and becomes elastic |
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Definition
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| is a market with only a few sellers each offering a product similar or identical to the others |
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Term
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| a few lagre firms, market is concentrated., B. mergers. C product derferentiation |
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Term
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Definition
| interdependence among firms cullusion- an agreement among firms in the market about price and strff, creates a cartel |
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Term
| prisoners dilemma, 3 basic elements |
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Definition
| players, stradegies or possible actions each player can choose from, 3 pay off for each player receives from strad. |
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Term
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Definition
| a combination of strad such that each player strad is the best he can do given the strad chossen by onther pklayers |
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Term
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Definition
| one that yield higher pay off no matter what other player chooses to do. |
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