- Shuffle
Toggle OnToggle Off
- Alphabetize
Toggle OnToggle Off
- Front First
Toggle OnToggle Off
- Both Sides
Toggle OnToggle Off
Front
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
PLAY BUTTON
PLAY BUTTON
35 Cards in this Set
- Front
- Back
|
Welfare economics
|
the study of how the allocation of resources affects economic well0being
|
|
Willingness to pay
|
the maximum amount that a buyer will pay for a good
|
|
Consumer surplus
|
the amount a buyer is willing to pay for a good minus the amount the buy actually pays for it
|
|
Cost
|
the value of everything a seller must give up to produce a good
|
|
Producer surplus
|
the amount a seller is paid for a good minus the seller's cost of providing it
|
|
Efficiency
|
the property of a resource allocation of maximizing the total surplus received by all members of society
|
|
Equality
|
the property of distributing economic prosperity uniformly among the members of society
|
|
Deadweight ,loss
|
the fall in total surplus that results from a market distortion, such as a tax
|
|
Total revenue
|
the amount a firm receives for the sale of its output
|
|
Total cost
|
the market value of the inputs a firm uses in production
|
|
Profit
|
total revenue minus total cost (TR-TC)
|
|
Explicit costs
|
input costs that require an outlay of money by the firm
|
|
Implicit costs
|
inputs costs that do not require an outlay of money by the firm
|
|
Economic profit
|
total revenue minus total, including both explicit and implicit costs
|
|
Accounting profit
|
total revenue minus total explicit cost
|
|
Production functions
|
the relationship between quantity of inputs used to make a good and the quantity of output of that good
|
|
Diminishing marginal product
|
the property whereby the marginal product of an input declines as the quantity of the input increases
|
|
Fixed costs
|
costs that do not vary with the quantity of output produced
|
|
Variable costs
|
costs that vary with the quantity of output produced
|
|
Average total cost
|
total costs costs divided by the quantity of output (TC/Q)
|
|
Average fixed cost
|
fixed cost divided by the quantity of output
|
|
Average variable cost
|
variable cost divided by quantity of output
|
|
Marginal cost
|
the increase in total cost that arises from an extra unit of production
|
|
Efficient scale
|
the quantity of output that minimizes total cost
|
|
Diseconomies of scale
|
the property whereby long-run average total cost rises as the quantity of output increases
|
|
Constant returns of scale
|
the property whereby long-run average total cost stays the same as the quantity of output changes
|
|
Competitive market
|
a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
|
|
Average revenue
|
total revenue divided by the quantity sold (TR/Q)
|
|
Marginal revenue
|
the change in total revenue from an additional unit sold
|
|
Sunk cost
|
a cost that has already been committed and cannot be recovered
|
|
Monopoly
|
a firm that is the sole seller of a product without close substitutes
|
|
Natural monopoly
|
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
|
|
Price discrimination
|
the business practice of selling the same good at different prices to different customers
|
|
Oligopoly
|
a market structure in which only a few sellers offer similar or identical products
|
|
Monopolistic competition
|
a market structure in which many firms sell products that are similar but not identical
|
