The change in total output that results from one additional unit of input is the:
Marginal physical product
The law of diminishing returns indicates that the marginal physical product of a factor declines as more:
Of the factor is used, holding other inputs constant
In the short run, a manufacturer should produce the next unit of output as long as:
Price is greater than marginal cost
Are the total value of resources used to produce a good but for which no direct payment is made
Competitive firms cannot individually affect market price because:
Their individual production is insignificant relative to the production of the industry
Which list has market structures in the correct order from the most to the least market power?
Monopoly, oligopoly, monopolistic competition, perfect competition
Which of the following is characteristic of a perfectly competitive market?
There are low barriers to entry
In a perfectly competitive market, an individual catfish farmer faces a firm demand curve that:
Is flat or horizontal
Which of the following is involved in a competitive firm's short-run production decision?
Choosing a rate of output using the existing plant and equipment
In a perfectly competitive market with positive economic profits:
Firms will enter until economic profits are zero
Which of the following firms is likely to have the greatest market power?
The sole producer of the latest computer microchip technology
The demand curve for a monopolist:
Lies above the marginal revenue curve at every point but the first
The change in total revenue that results from a one-unit increase in quantity sold is:
In order to sell one additional unit of output, a profit-maximizing monopolist must:
Reduce the price of all units sold
Which of the following rules is always satisfied when a monopoly maximizes profits?
Marginal revenue equals marginal cost
A monopolist sets price at a point on the _______ curve, corresponding to the rate of output determined by the intersection of _______.
Demand; marginal revenue and marginal cost
Which of the following is true during the expansionary phase of the business cycle?
Real GDP increases
The total value of goods and services produced within a nation's borders, measured in constant prices refers to:
All persons over age 16 who are either working for pay or actively seeking paid employment refers to:
The labor force
The unemployment rate is calculated by dividing:
The number of unemployed by the labor force and multiplying by 100
The Consumer Price Index is:
A measure of changes in the average price of consumer goods and services
the ability and willingness to sell different quantities of a product at different prices in a given time period ceteris paribus
a firm that has no market piwer and is not able to affect the price of products; is a price taker
market structure from least to most powerful:
perfect competition, monopolistic competition, oligopoly, duopoly, monopoly
the sum of all quantities of a good or service that each firm is willing and able to supply at different prices ceteris paribus
characteristics of a competitive market
many firms, identical product, MC=P, low entry barriers, zero economic profit, buyers and sellers know about market opportunities
single producer that produces entire quantity supplied to market, represents entire industry,
a grant given to a firm by the government; gives the firm exclusive ownership of an innovation
barriers to entry include:
patents, legal harassment, exclusiv licensing, bundled products, government franchises
3 ?s with monopolies
for whom- not everyone, only some can afford; what- less output; how- breeding, harvesting, distributing (restricts technology development)
market value in current prices of all goods and services produced in a given period of time; not adjusted for inflation
market value in real prices of all goods and services produced in a given period of time; adjusted for inflation
due to factors such as weather, variations in tourism, etc causing loss of jobs
when demand for goods and services decrease so production levels and demand for labor decreases
a comparison of the changes in price of one good relative to the prices of other goods
people with some wealth affected differently by redistribution relative to people who do not have any wealth