Term
| What does a change in quantity supplied mean? |
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Definition
| A movement on the supply curve |
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Term
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Definition
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Term
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Definition
| Absolute limit to the number of units of a good that can be imported |
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Term
| What is the difference between GATT and WTO? |
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Definition
| GATT was first and didn't cover environmental. WTO does cover environmental and has more countries |
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Term
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Definition
| Study of how to allocate scarce resources to satisfy unlimited wants |
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Term
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Definition
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Term
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Definition
| When price goes up, quantity demanded goes down |
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Term
| Reasons for Change in Demand Shift |
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Definition
N- # of buyers
I- income changes
C- complementary good price change
E- expectations of future prices
S- substitute good price changes
T- taste & preferences |
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Term
| Changes in Supply- reasons to shift the curve |
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Definition
T- technology changes
R- resource prices (wages, raw material)
E-expectations of future prices
N- number of sellers
T-taxes & subsidies |
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Term
| What causes surpluses & shortages? |
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Definition
shortage= more demanded than supplied
surplus= more supplied than demanded (price then lowered) |
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Term
| What is market equilibrium? |
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Definition
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Term
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Definition
| Costs that remain constant as output changes |
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Term
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Definition
| Costs that change as output changes |
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Term
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Definition
| The cost of all inputs a firm uses in production |
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Term
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Definition
| Fixed Cost divided by the quantity of output produced |
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Term
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Definition
| Variable cost divided by the quantity of output produced |
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Term
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Definition
| Total cost divided by the quantity of the product sold |
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Term
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Definition
| The change in a firm's total cost from producing one more unit of a good or service |
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Term
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Definition
| Change in total revenue from selling one more unit of a product |
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Term
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Definition
| The period of time during which at least one of a firm's inputs is fixed |
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Term
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Definition
| The period of time in which a firm can vary all its inputs, adopt new technology, and increase or decrease the size of its physical plant |
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Term
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Definition
| the situation when a firm's long run average costs fall as it increases output |
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Term
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Definition
| The situation when a firm's long-run average costs rise as the firm increases output |
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Term
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Definition
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Term
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Definition
-100s of firms
-agricultural goods
-identical/homogenous
-price taker
- easy to enter/exit the market |
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Term
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Definition
-50 firms
-differentiated product
-restaurants
-fairly easy to enter market |
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Term
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Definition
-4-8 firms
-Differentiated products
-Auto Manufacturers
-Difficult to enter market
-game theory |
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Term
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Definition
-1 Firm
-Difficult to enter market
-Utility
-No close substitutes |
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Term
| Where is profit maximization reached? |
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Definition
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Term
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Definition
| A government order prohibiting the movement of merchant ships into or out of its ports |
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Term
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Definition
| between countries that is without government restrictions |
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