final

Question 1

what is the cost of production?

Question 2

what are the factors of production?

Answer 2

inputs from resources - producing goods or services, land, labor, capital, entrepreneurship

Question 3

what does the production function show?

Answer 3

shows maximum quantity from mix of production

Question 4

what does it mean when a company produces at a technically effect output level?

Question 5

how does economics define the short run?

Question 6

what is marginal physical product?

Question 7

when does diminishing returns occur?

Answer 7

when costs are increased while production decreases

Question 8

what is profit?

Answer 8

income - expenses = profit

Question 9

what is marginal costs?

Answer 9

increases total costs by one unit increase

Question 10

how do we define total costs?

Question 11

what are fixed costs?

Answer 11

short run costs

Question 12

what is the average total costs?

Question 13

what are explicit costs?

Question 14

what is an economic cost?

Answer 14

cost of product is measured to value of resources needed to produce

Question 15

how do we define the long run?

Question 16

what are the economies of scale?

Answer 16

reductions in minimum average costs that increases sizes

Question 17

what is economic profit?

Question 18

how do we define a monopoly?

Question 19

what do we mean by a market structure for an industry?

Question 20

define a perfectly competitive market in a company?

Question 21

what is the primary objective of a perfectly competitive firm?

Question 22

in the short run when does a perfectly competitive firm maximize profits?

Question 23

what is the production decision?

Question 24

what is the supply curve for a competitive company?

Question 25

what is market power?

Answer 25

the power to control the market and prices

Question 26

what is a monopoly?

Question 27

what is a price taker?

Question 28

where does both competitive industry and a monopoly maximize profit?

Question 29

why is the marginal revenue curve always below the demand curve?

Question 30

when should a monopoly expand production?

Question 31

where do monopolists set prices?

Question 32

what do both monopoly and competitive companies both try to achieve?

Question 33

define barriers to entry

Question 34

what are examples of barriers to entry?

Question 35

define economies of scale

Question 36

when does a monopoly realize larger profits than a comparable competitive market?

Question 37

define price discrimination

Answer 37

same services/goods provided at different prices

Question 38

what are some of the arguments in favor of concentration of market power?

Answer 38

ability to have research and development resources