Th3: Definitions 5 Flashcards
1
Q
Third degree price discrimination
A
when monopolists charge different prices to different groups for the same good or service
2
Q
Total cost
A
the cost to produce a given level of output
total variable costs + total fixed costs
3
Q
Total revenue
A
revenue generated from the sale of a given level of output
price x quantity sold
4
Q
Variable cost
A
costs which change with output
5
Q
Vertical integration
A
when a firm merges or takes over another firm in the same industry, but at a different stage of production
6
Q
X-inefficiency
A
when firms produce at a cost above the AC curve
