Microeconomic decision makers Flashcards
Chapter 3
Money
an item which is generally acceptable as a mean of payment and settlement of depth
Barter
involves exchanging goods and serves for one product is made with another product
Function of money
- medium of exchange
- standard of differed payment
- store of value
- unit of account
Characteristics of money
- acceptability
- durability
- portability
- divisibility
- scarcity
Trade unions
An organization of workers formed to promote & protect the interest of its members concerning wages, benefits & working conditions
Horizontal integration
merging over two or more firms with the same industry and at the same stage of production
Vertical integration
merging over two or more firms with the same industry but at different stage of production
Conglomerate
Merging over two or more firms in different industry and stage of production
Fixed cost
Costs that don’t varies with the level of output eg. cost of land
Variable cost
Costs that varies with the level of output eg. cost of raw materials
Breakeven
total revenue = total cost
Total cost
fixed cost + variable cost
Average cost (2)
- Total cost / output (Q)
- AFC + AVC
Average variable cost
total variable cost / output (Q)
Average fixed cost
total fixed cost / output (Q)
