Module 3 Flashcards
1
Q
demand
A
relationship btwn price and quantity of product or good
2
Q
price increases
A
fewer willing to buy
3
Q
demand changes
A
relationship between price and quantity shifts
4
Q
marginal analysis
A
decision making based on incremental changes
5
Q
sunk costs
A
expenses that have already been incurred and cannot be recovered
should have no effect on current or future decision making
6
Q
opportunity costs
A
values of using cash flows in their next best alternative
7
Q
stadium financing
A
often financed to some extent w/ public money
comes from gov’t
8
Q
principal agent problem
A
aligning incentives btwn firm and employees
player incentives should be aligned w/ team incentives
