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Definition
| the property of a good whereby a person can be pervented from using it |
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| the property of a good whereby one person's use diminishes other people's use |
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Definition
| goods that are both excludable and rival in consumption |
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Definition
| goods that are neither excludable nor rival in consumption |
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Definition
| goods that are rival in consumption but not excludable |
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Definition
| a person who receives the benefit of a good but avoids paying for it |
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Definition
| a study that compases the costs and benefits to society of providing a public good |
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Definition
| a parable that illustrates why commom resources get used more than is desirable from the standpoint of society as a whole |
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Term
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Definition
| the tax rate applied to each additional dollar of income |
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Term
| payroll tax (social insurance tax) |
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Definition
| a tax on wages that a firm pays its workers |
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Definition
| business that is set up as a separate legal intity |
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Term
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Definition
taxes on a specific goods like gasoline, cigarettes, and alcoholic beverages.
or small items such as estate taxes and cutoms duties |
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Term
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Definition
| a government payment not made in exchange for a good or service |
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Term
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Definition
| an excess of government spending over government receipts |
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Term
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Definition
| an excess of government receipts over government spending |
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Term
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Definition
| the amount a firm receives for the sale of is output |
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Term
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Definition
| the market value of the inputs a firm uses in production |
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Definition
| total revenue minus total cost |
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Term
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Definition
| input costs that require an outlay of money by the firm |
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Term
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Definition
| input costs tha do not require an outlay of money by the firm |
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Term
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Definition
| total revenue minus total explicit cost |
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Term
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Definition
| the relationship betwen quantity of inputs used to make a good and the quantity of outputs of that good |
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Term
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Definition
| the increase in output that arises from an additional unit of input |
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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
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Definition
| costs tha do not vary with the quantity of output produced |
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Term
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Definition
| total revenue minus total cost, including boh explicit and implicit costs |
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Term
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Definition
| total cost divided by the quantity |
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Term
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Definition
| fixed costs divided by the quantit of output |
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Term
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Definition
| variable costs divided by the quantity of output |
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Term
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Definition
| the increase in total cost that arises from an extra unit of production |
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Term
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Definition
| the quantity of output that minimizes average total cost |
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Term
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Definition
| the property whereby long-run average total cost falls as the quantity of output increases |
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Term
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Definition
| the property whereby long-run average total cost rises as the quanity of output increases |
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Term
| constant returns to scale |
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Definition
| the property whereby long-run average total cost stays the same as the quantity of output changes |
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Term
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Definition
| a market with may buyers and sellers trading indentical products so that each buyer and seller is a price taker |
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Definition
| total revenue divided by the quantity sold |
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Term
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Definition
| the change in total revenue from an additional unit sold |
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Term
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Definition
| a cost that has already been commmitted and cannot be recovered |
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Definition
| a firm that is the sole seller of a product without close substitutes |
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Term
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Definition
| 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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Term
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Definition
| a market structure in which only a few sellers offer simialr or idential products |
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Term
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Definition
| a market sturcture in which many firms sell products that similar but not identical |
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Term
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Definition
| an agreement amoung firms in the market about quanities to produce or prices to change |
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Definition
| a group of firms acting in unison |
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Definition
| a situation in which economic participants interacting with one another each choose their best strategy given the strategies that all the others have chosen |
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Definition
| the study of how people behave in strategic situations |
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Definition
| a particular "game" between two captured prisoners that illustrates why cooperations is difficult to maintain even when it is mutally beneficial |
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Definition
| a strategy that is best for a player in a game regardless of the strategies chosen by the other players |
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Term
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Definition
| a market structure in which many firms sell products that are similar but not identical |
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