Exam Notes Semester 1 Flashcards
0
Q
Supply Curve
A
- Marginal cost curve
- minimum price willing to sell
- willingness to receive curve
1
Q
Demand Curve
A
- willingness to pay curve
- marginal benefit curve
2
Q
competitive market
A
- many firms
- products are homogenous
- firms have no control over price
- no barriers of entry
- perfect mobility
- perfect knowledge
- agricultural market
3
Q
monopolistic competition
A
- many firms
- goods are same but not identical
- firms have no control over price
- no barriers of entry
- perfect knowledge
- perfect mobility
4
Q
characteristics of monopoly
A
- one firm
- no subs
complete barriers of entry - firm has control over price
- can set price thus demand
- can set quantity
5
Q
market failure
A
- the inability to achieve socially efficient outcomes
- can result in the production of socially inefficient amount of a good or service
