deck_18249933 Flashcards
Types of elasticity for demand
Demand is sensitive to price changes. A small price change leads to a significant change in quantity demanded.
Elastic demand
Types of elasticity for demand
Demand is not sensitive to price changes. A price change has little effect on quantity demanded.
Inelastic demand
Types of elasticity for demand
The percentage change in quantity demanded is equal to the percentage change in price.
Unitary elastic demand
Types of elasticity for demand
Any price increase leads to zero quantity demanded.
Perfectly elastic demand
Types of elasticity for demand
Quantity demanded remains the same regardless of price changes.
Perfectly inelastic demand
Types of elasticity for supply
Supply is sensitive to price changes. A small price change leads to a significant change in quantity supplied.
Elastic supply
Types of elasticity for supply
Supply is not sensitive to price changes. A price change has little effect on quantity supplied.
Inelastic supply
Types of elasticity for supply
The percentage change in quantity supplied is equal to the percentage change in price.
Unitary elastic supply
Types of elasticity for supply
Any price decrease leads to zero quantity supplied.
Perfectly elastic supply
Types of elasticity for supply
Quantity supplied remains the same regardless of price changes.
Perfectly inelastic supply
11 categories for production process
The amount of goods or services produced.
Quantity
11 categories for production process
Costs that do not change with the level of production.
Fixed cost
11 categories for production process
Costs that change with the level of production.
Variable cost
11 categories for production process
The sum of fixed and variable costs.
Total cost
11 categories for production process
Fixed cost per unit of output.
Average fixed cost
11 categories for production process
Variable cost per unit of output.
Average variable cost
11 categories for production process
Total cost per unit of output.
Average total cost
11 categories for production process
The cost of producing one additional unit of output.
Marginal cost
11 categories for production process
The amount for which a good or service is sold.
Price
11 categories for production process
The revenue gained from selling one additional unit of output.
Marginal Revenue
11 categories for production process
The total amount of money received from selling goods or services.
Total Revenue
Criteria for market structure
The number of firms in the market.
Number of sellers
The level of competition among firms in the market.
Number of competition
The ability of a firm to influence the price of a good or service.
Pricing power
