Beco Exam 3 Flashcards
A concept that relates the amount of a good people plan to obtain to the sacrifices they must make to obtain these these amounts
Demand
A proportionate saving in costs gained by an increased level of production
Economies of scale
Forces that cause larger firms and governments to produce goods and services at increased per-unit costs
Diseconomies of scale
A goods demand is increased when the price of another good is decreased
Complement
Costs that must be incurred in fixed quantity regardless of the level of output produced
Average fixed costs
Sum of average variable costs and average fixed costs
Average total cost
A proportionate saving gained by producing 2 or more goods, when the cost of doing so is less than that of producing each separately
Economy of scope
A side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of goods or services
Externality
There are no fixed factors in:
Long run
There are fixed and variable factors in:
Short run
The change in output resulting in the change of one more unit of input
Marginal product
The cost added by producing one extra item of a product
Marginal cost
The additional revenue that will be created by increasing product sales by one unit
Marginal revenue
Market structure in which there is only 1 producer/ seller of a product
Monopoly
Market structure in which a small number of firms has the largest majority of market share
Oligopoly
