Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Human Resources > Micro Econ Final > Flashcards

Micro Econ Final Flashcards

1
Q

Long Run

A

factors of production are variable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

total costs

A

Fixed costs +variable costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

total revenue

A

price x quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Demand determinants

A 
Income
expectation
preference
demographics
price of related goods
distribution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

shortage

A

When demand is higher than supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Surplus

A

Quantity demand is greater than supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

the law of increasing costs

A

as the economies production of a product increases the per unit cost of production rises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Normal profits

A

the minimum amount of profits that are earned to keep the business running

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

fair return price

A

a price that guarantees a firm will make normal profits only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

fair return on the graph

A

where Average costs intersect Demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

socially optimum price

A

the price that produces the best allocation of resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

socially optimum price on the graph

A

Where marginal costs intersect Demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Marginal Revenue

A

the extra revenue derived from the sale of one or more units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

monopolist profit maximization

A

when marginal cost equals marginal revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

the output on the graph

A

where Marginal Cost intersects with Marginal revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what factors distinguish an oligopoly

A
  • few competitors
  • advertising
  • sell similar products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what price does a monopolistically competitive firm charge?

A

price greater than marginal cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

short run

A

a period of time in which factors are fixed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Profit-maximizing output on a graph

A

Where MR and MC intersects, the price is found by drawing a line to the demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Break-even on a graph

A

Where MR and ATC intersects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

average profit

A

total profit divided by quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

total profit

A

the difference between AR and AC times the output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Economic capacity

A

lowest average total cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

point of maximum productivity

A

Lowest average cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Point of diminishing returns

A

lowest marginal cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

socially optimum price

A

the price which ensures the best allocation of products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

monopolistic competition

A

the term for a market structure in which there are many firms who sell a different product and have some control over the price of the product they sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what is profit maximization criteria for a monopolistic firm

A

Marginal revenue equals marginal cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

horizontal demand curve

A

elastic demand

30
Q

verticle demand curve

A

perfectly inelastic

31
Q

verticle supply curve

A

perfectly inelastic

32
Q

horizontal supply curve

A

perfectly elastic supply

33
Q

unitary elastic

A

the point where percentage change in quantity is exactly equal to the percentage change in price

34
Q

unitary elastic coefficient

A

1

35
Q

unitary elastic curve

A

a curved line, C shaped

36
Q

cross elasticity of demand

A

how the quantity demanded of product A responds to a change in the price of product B

37
Q

perfectly inelastic

A

price change doesn’t affect demand, for example, electricity, gas, water

38
Q

perfectly elastic

A

price change affects quantity demanded.example pizza, restaurants

39
Q

Perfectly elastic coefficient

A

∞

40
Q

perfectly inelastic coefficient

A

0

41
Q

consumer surplus

A

the difference between what a customer is willing to pay and the actual price of the product

42
Q

the marginal rate of substitution

A

the amount of one good a consumer is willing to give up to get more one unit of another good and still maintain the same level of satisfaction.

43
Q

the marginal rate of substitution

A

the amount of one good a consumer is willing to give up to get more one unit of another good and still maintain the same level of satisfaction.

44
Q

excess capacity

A

the situation in which a firms output is below economic capacity

45
Q

constant return to scale

A

a firms output increases by the same percentage as the increase in its inputs

46
Q

increasing returns to scale

A

a firms output increases by a greater percentage than the increase in its inputs

47
Q

economies of scale

A

coat advantage achieved as a result of larger scale operations

48
Q

decreasing return to scale

A

a situation in which a firms output increases by a smaller percentage than the increase to its inputs

49
Q

many firms

A

perfect competition

monopolistic competition

50
Q

few firms

A

differentiated oligopoly

undifferentiated oligopoly

51
Q

one firm

A

monopoly

52
Q

perfect competition

A

a market in which buyers and sellers are price takers

53
Q

economic profit on a curve

A

where TR and TC has the greatest distance from each other

54
Q

shutdown price

A

the price that is just sufficient to cover a firm’s variable costs

55
Q

market failure

A

the defect in competitive markets that prevent them from achieving an efficient or equitable allocation pf resources

56
Q

imperfect competition

A

a market in which producers are identifiable and have some control over price

57
Q

monopolistic competition

A

a market in which there are many firms that sell a differentiated product

58
Q

nash equilibrium

A

a situation in where each rival chooses the best actions given the anticipated actions of the others

59
Q

marginal wage cost

A

the extra cost of hiring an additional employee

60
Q

common property resources

A

resources not owned by an individual or firm

61
Q

terms of trade

A

the average price of a countries exports compared with the price of its imports

62
Q

4 resources in the production of goods

A

land
labour
entrepreneurship
capital

63
Q

when is the percentage change in quantity exactly equal to the percentage change in price

A

when the demand is unitary elastic

64
Q

The coefficient is greater than 1

A

elastic

65
Q

why might a good harvest be bad news for farmers

A

because the demand for many basic agricultural products is very inelastic

66
Q

implicit costs

A

costs that are not actually paid out in money

67
Q

what do economists consider the true costs of doing business

A

explicit costs plus implicit costs

68
Q

what causes marginal costs to rise

A

the fact that ATC increases

69
Q

what is the long run average cost curve

A

graphic representation of the average cost of production in the long run

70
Q

inferior good

A

a product which demand falls if income rise

Human Resources (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions