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Definition
| A market with many buyers and sellers trading identical products so that each buyer and seller is a price taker. |
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| Total revenue divided by the quantity sold. |
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| The change in total revenue from an additional unit sold. |
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| A cost that has already been committed and cannot be recovered. |
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| A firm that is the sole seller of a product without close substitutes. |
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| A monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms. |
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| The business practice of selling the same good at different prices to different customers. |
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| The socially efficient quantity that is found where the demand curve and the marginal-cost curve intersect. |
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Definition
| A market structure in which only a few sellers offer similar or identical products. |
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Definition
| A group of firms acting in unison. |
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| An Agreement among firms in a market about quantities to produce or price to charge. |
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Definition
| A situation in which economics actors intersecting with one another each choose their best strategy given the strategies that all the other actors have chosen. |
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Definition
| A particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial. |
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| The study of how people behave in strategic situations. |
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| A strategy that is best for a player in a game regardless of the strategies chosen by the other players. |
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Definition
| A manufacturer and its distributors agree that the latter will sell the former's product at certain prices. |
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Definition
| When a firm with market power uses that power to rise prices above the competitive level. |
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Definition
| Offering a product that must be purchased with another and cannot be bought separately. |
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Definition
| A market structure in which many firms sell products that are similar but not identical. |
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Definition
| In the long run, perfectly competitive firms produce at the efficient scale, whereas monopolistic competitive firms produce below this level. |
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Definition
| A price set above the marginal cost. |
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Definition
| The inputs used to produce goods and services. |
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Definition
| The demand for a factor of production. |
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Term
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Definition
| The relationship between the quantity of inputs used to make a good and quantity of output of that good. |
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Term
| Marginal Product of Labor |
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Definition
| The increase in the amount of output from an additional unit of labor. |
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Term
| Diminishing Marginal Product |
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Definition
| The property whereby the marginal product of an input declines as the quantity of the input increases. |
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Term
| Value of The Marginal Product |
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Definition
| The marginal product of input times the price of the output. |
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Definition
| The extra revenue the firm gets from hiring an additional unit of a factor of production. |
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Definition
| When a firm exerts a large influence on the going wage, and uses the market power to alter the outcome. |
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Definition
| A person who opposes technological progress. |
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Term
| Compensating Differential |
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Definition
| A difference in wages that arises to offset the non-monetary characteristics of different jobs. |
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Definition
| The accumulation of investments in people such as education and on-the-job training. |
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Definition
| Above-equilibrium wages paid by firms to increase worker productivity. |
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Definition
| The offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics. |
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Definition
| The price of a good that prevails in the world market for that good. |
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Definition
| When the domestic price is high and the cost of producing a product is high. |
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Term
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Definition
| A tax on goods produced abroad and sold domestically. |
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