Exam 3 Flashcards
1
Q
marginal cost
A
additional cost of producing the next unit of output
2
Q
monopoly
A
industry with only one seller
3
Q
dead weight loss
A
economic surplus that is lost when a competitive industry is taken over by a single seller
4
Q
price discrimination
A
when a monopoly seller charges each buyer a different price; his/her maximum willingness to pay
5
Q
economic profit
A
the measure of profit equals total revenue-explicit costs-implicit costs
6
Q
variable costs
A
costs that depend on a producer’s level of output
7
Q
average cost
A
cost of the typical unit of output
8
Q
ATC=
A
TC/Q
9
Q
TC=
A
AC*Q
10
Q
MC=
A
∆TC/∆Q
11
Q
MR=
A
∆TR/∆Q
12
Q
πecon=
A
TR-TCexp-TCimp
