Econ Final Flashcards
Monopoly
One firm; entry blocked; Unique product; ie oil
Oligopoly
Few firms; low ease of entry; Identical/Differentiated products; ie cars
Monopolistic Competition
Many Firms; High ease of entry; differentiated products
Perfect competition
Many firms; high ease of entry; identical products
Price x Quantity =
Total Revenue
Fixed Cost + Variable Cost=
Total Cost
Total Revenue/ Quantity=
Average Revenue
Difference between Economists and Accountants
Econs count both explicit and implicit costs while Accts only count explicit
Price=
Marginal Revenue
Total Cost + Total Revenue =
Profit
Marginal Cost=
The change in total cost/ the change in quantity
Price goes down
Quantity Demanded goes up
Price goes up
Quantity supplied goes up
shifters
income, taste, preferences, population, input prices, technology, expectations, number of sellers
Law of demand
Price and Quantity demanded move in different directions
