Term
| Six factors that cause a shift in the demand curve |
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Definition
income
market size
consumer taste
consumer expectations
substitute goods
complementary goods |
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Term
| formula for calculating elasticity of demand |
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Definition
| percent change in quantity demanded/percent change in price |
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Term
| how to calculate total cost |
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Definition
| fixed costs + variable costs |
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Term
| how to calculate marginal cost |
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Definition
| change in total cost/change in total product |
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Term
| how to calculate marginal revenue |
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Definition
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Term
| how to calculate total revenue |
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Definition
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Term
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Definition
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Term
| 6 Factors that affect supply |
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Definition
input costs
labor productivity
technology
government action
producer expectations
number of products |
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Term
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Definition
| legal minimum price buyers may pay for a product |
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Term
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Definition
| legal maximum price buyers may pay for a product |
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Term
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Definition
natural
government
technological
geographic |
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Term
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Definition
costs of production are lowest when only one firm provides output
inefficient to have competition |
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Term
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Definition
exists because the government either owns and runs the business, or authorizes only one producer
post office |
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Term
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Definition
| exists because the firm controls a manufacturing method, invention, or type of technology |
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Term
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Definition
there are no other producers or sellers within a certain region
gas station in the desert |
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Term
| 3 characteristics of a monopoly |
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Definition
only one seller
restricted and regulated market
control of prices |
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Term
| 5 characteristics of Perfect Competition |
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Definition
many buyers and sellers
standardized products
freedom to enter/exit markets
independent buyers and sellers
well-informed buyers and sellers |
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Term
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Definition
| seller who accepts market price set by supply and demand |
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Term
| 4 Characteristics of Monopolistic Competition |
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Definition
many buyers and many sellers
similar but different products
limited control of prices
freedom to enter/exit market |
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Term
| 4 characteristics of an oligopoly |
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Definition
few sellers, many buyers
standardized/differentiated products
more control of prices
little freedom to enter/exit market |
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Term
| # of sellers in perfect, mon. competition, oligopoly, and monopoly |
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Definition
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Term
| type of product in perfect, mon. competition, oligopoly, and monopoly |
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Definition
| standardized, similar but different, standardized/ differentiated, no substitutes |
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Term
| what sellers control in perfect, mon. competition, oligopoly, and monopoly |
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Definition
| independent, limited, more control, can control |
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Term
| barriers to enter or exit the market in perfect, mon. competition, oligopoly, and monopoly |
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Definition
| freedom, freedom, little freedom, government regulations and resources and size and technology |
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