Terms : Hide Images
| 5018971885 | economic cost | A payment that must be made to obtain and retain the services of a resource | 0 | |
| 5018971886 | explicit cost | The monetary payment a firm must make to an outsider to obtain a resource. | 1 | |
| 5018971887 | implicit cost | The monetary income a firm sacrifices when it uses a resource it owns rather than supplying the resource in the market | 2 | |
| 5018971888 | normal profit | The payment made by a firm to obtain and retain entrepreneurial ability | 3 | |
| 5018971889 | economic profit | The total revenue of a firm less its economic costs(which include both explicit costs and implicit costs) | 4 | |
| 5018971890 | short run | In microeconomics, a period of time in which producers are able to change the quantities of some but not all of the resources they employ | 5 | |
| 5018971891 | long run | In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ | 6 | |
| 5018971892 | total product | The total output of a particular good or service produced by a firm | 7 | |
| 5018971893 | marginal product | The additional output produced when 1 additional unit of a resource is employed | 8 | |
| 5018971894 | average product | The total output produced per unit of a resource employed | 9 | |
| 5018971895 | law of diminishing returns | The principle that as a consumer increases the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases. | 10 | |
| 5018971896 | fixed cost | Any cost that in total does not change when the firm changes its output. | 11 | |
| 5018971897 | variable cost | A cost that in total increases when the firm increases its output and decreases when the firm reduces its output. | 12 | |
| 5018971898 | total cost | The sum of fixed cost and variable cost. | 13 | |
| 5018971899 | average fixed cost | A firm's total fixed cost divided by output | 14 | |
| 5018971900 | average variable cost | A firm's total variable cost divided by output. | 15 | |
| 5018971901 | average total cost | A firm's total cost divided by output | 16 | |
| 5018971902 | marginal cost | The extra (additional) cost of producing 1 more unit of output | 17 | |
| 5018971903 | economies of scale | Reductions in the average total cost of producing a product as the firm expands the size of plant (its output) in the long run. | 18 | |
| 5018971904 | diseconomies of scale | Increases in the average total cost of producing a product as the firm expands the size of its plant (its output) in the long run. | 19 | |
| 5018971905 | constant returns to scale | Unchanging average total cost of producing a product as the firm expands the size of its plant (its output) in the long run. | 20 | |
| 5018971907 | natural monopoly | An industry in which economies of scale are so great that a single firm can produce the product at a lower average total cost than would be possible if more than one firm produced the product. | 21 | |
| 5018971908 | pure competition | A market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition | 22 | |
| 5018971909 | pure monopoly | A market structure in which one firm sells a unique product, into which entry is blocked, in which the single firm has considerable control over product price, and in which nonprice competition may or may not be found. | 23 | |
| 5018971910 | monopolistic competition | A market structure in which many firms sell a differentiated product, into which entry is relatively easy, in which the firm has some control over its product price, and in which there is considerable nonprice competition. | 24 | |
| 5018971911 | oligopoly | A market structure in which a few firms sell either a standardized or differentiated product, into which entry is difficult, in which the firm has limited control over product price because of mutual interdependence (except when there is collusion among firms), and in which there is typically nonprice competition. | 25 | |
| 5018971912 | imperfect competition | All market structures except pure competition | 26 | |
| 5018971913 | price taker | A seller (or buyer) that is unable to affect the price at which a product or resource sells by changing the amount it sells (or buys). | 27 | |
| 5018971914 | average revenue | Total revenue from the sale of a product divided by the quantity of the product sold (demanded) | 28 | |
| 5018971915 | total revenue | The total number of dollars received by a firm (or firms) from the sale of a product | 29 | |
| 5018971916 | marginal revenue | The change in total revenue that results from the sale of 1 additional unit of a firm's product | 30 | |
| 5018971917 | break-even point | An output at which a firm makes a normal profit (total revenue=total cost) but not an economic profit. | 31 | |
| 5018971918 | MR = MC rule | The principle that a firm will maximize its profit by producing the output at which marginal revenue and marginal cost are equal, provided product price is equal to or greater than average variable cost. | 32 | |
| 5018971919 | short-run supply curve | A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run | 33 | |
| 5018971920 | long-run supply curve | As it applies to macroeconomics, a supply curve for which price, but not real output, changes when the demand curves shifts | 34 | |
| 5018971921 | constant-cost industry | An industry in which expansion by the entry of new firms has no effect on the prices firms in the industry must pay for resources and thus no effect on production costs. | 35 | |
| 5018971924 | productive efficiency | The production of a good in the least costly way | 36 | |
| 5018971925 | allocative efficiency | The apportionment of resources among firms and industries to obtain the production of the products most wanted by society. | 37 | |
| 5018971926 | consumer surplus | The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price. | 38 | |
| 5018971927 | producer surplus | The difference between the actual price a producer receives (or producers receive) and the minimum acceptable price. | 39 | |
| 5041039283 | Creative Destruction | A company creatively overpowers other companies by making better and bigger stuff. | 40 | |
| 5041065445 | Shut Down Rule | AVC>P | 41 | |
| 5260646353 | Monopolistic competition | A market structure in which a large number of firms make similar but slightly different products and compete on product quality, price, and marketing, and firms are free to enter or exit the market. | 42 | |
| 5260652760 | Monopoly | A market structure in which there is one firm, which produces a good or service that has no close substitutes and in which the firm is protected from competition by a barrier preventing the entry of new firms. | 43 | |
| 5260657853 | Normal Profit | The return to entrepreneurship. It is the profit that an entrepreneur earns on average. | 44 | |
| 5311932457 | Game Theory | The use of mathematical models to represent complex decision making in which the actions of other group members must be taken into account. | 45 | |
| 5311936092 | Example of an Oligopoly | oil companies, cereal companies, car manufacturers, airlines | 46 | |
| 5311937581 | Cartel | a formal organization of producers that agree to coordinate prices and production | 47 | |
| 5311943100 | Dominant Strategy | a strategy that is the best for a firm, no matter what strategies other firms use | 48 | |
| 5311946459 | Kinked Demand Curve |  | 49 | |
| 5311950280 | Price Discrimination |  | 50 | |
| 5311957578 | Pure Monopoly |  | 51 | |
| 5311961288 | Perfect Competition |  | 52 | |
| 5311972578 | Monopolistic Competition |  | 53 |
