4 Flashcards
fixed resources
resources that don’t change with the quantity produced
eg oven, sign, table
variable resources
resources that do change
eg workers, electricity, dough
short run
a period in which at least one resources are fixed
long run
all resources are variable
total physical product
total output or quantity produced
marginal product
the additional output generated by additional inputs(workers)
marginal product = (equation)
change in total product/
change in inputs
fixed costs
costs for fixed resources that dont change with the amount produced
eg rent insurance
variable costs
cost for variable resources that do change as more or less is produced
eg raw materials labor
total cost
fixed plus variable costs
marginal cost
additional costs of an additional output
if your fixed costs goes up what happens to the graph
afc and atc goes up
when variable costs goes up what happens to the graph
avc atc and mc goes up
accounting profit
accounting costs(explicit costs)-total revenue
economic profit
total revenue- economic costs( explicit and implicit costs)
perfect competition mr=
mc
perfect competition
many small firms identical product low barriers seller no need to advertise seller has no control over price
in a competitive firm mr=
d=average revenue = p
the shut down rule
when the price falls bellow avc then the firm should minimize its losses by shutting down
per unit
tax or subsidy is effects the variable costs so mc avc and atc will shift
lump sum
tax or subsidy only effects foxed costs so only afc and atc will shift mc will stay the same
in the long run…
firm will enter if the theres profit or leave if not
all firms break even they make no economic profit = normal profit
monopolies are inefficient because
charge a higher price
dont produce enough
produce at higher costs
where is consumer surplus and producer surplus
cs is top triangle of demand and price ps is bottom triangle inside price and quantity and mc
deadweight loss is
the top of the triangle of cs and ps where d and mc meet cut off by quantity
natural monopoly
it is natural for one firm to produce because they can produce at the lowest cost
economies of scale
bigger you are the cheaper it is to produce each unit
socially optimal price
p=mc (allocating efficiency
fair return price
p= atc (normal profit)
price discrimination
selling the same products to different buyers at different prices
eg movie tickets (adult child)
monopolistic competition
relatively large number of sellers differentiated products some control over price easy entry and exit a lot of non price competition (ads)
oligopoly
a few large producers identical or differentiated products high barrier to entry control over price mutual interdependence
almorzar
to have lunch
cerrar
to close
comenzar
to begin
conseguir
to get to obtain
contar (o ue)
to count to tell
decir e i
to say to tell
dormir o ue
to sleep
empezar e ie
to begin
encontrar o ue
to find
entender
to understand
hacer
to do to make
ir
to go
jugar u ue
to play (a sport or game
mostrar o ue
to show
oír
to hear
pedir e i
to ask for to request
pensar e ie
to think
pensar inf
to intend
pensar en
to think about
perder e ie
to lose to miss
poder o ue
to be able to, can
poner
to put to place
preferir e ie
to prefer
querer e ie
to want to love
