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Study sets matching "economics chapter 8 microeconomics"

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Study sets matching "economics chapter 8 microeconomics"

19 terms
Microeconomics Chapter 8
What the four monopoly market structure?
Characteristics of Perfect competition
Perfect Competition
Price Taker's Demand Curve
1- Perfect competition... 2- Monopolistic competition... 3- Oligopo…
- A lot of firms... - The product are homogeneous... - No substanti…
A market with many buyers and sellers, all selling a homogene…
- Perfect competition most sell at the price determined by ma…
What the four monopoly market structure?
1- Perfect competition... 2- Monopolistic competition... 3- Oligopo…
Characteristics of Perfect competition
- A lot of firms... - The product are homogeneous... - No substanti…
22 terms
Microeconomics Group Quiz- Chapter 8
B
B
C
D
B
B
21 terms
chapter 8 (microeconomics)
formula for profit
accounting cost
economic cost
accounting profit formula
profit= total revenue- total cost
explicit cost
explicit cost + implicit cost
profit= TR- accounting cost
formula for profit
profit= total revenue- total cost
accounting cost
explicit cost
13 terms
Economics - Chapter 8
Corporations
Sole Proprietorships
General Partnership
Franchise
A legal entity owned by individual stockholders, each of whom…
Businesses owned and operated by a single individual; the mos…
Partnership in which partners share equally in both responsib…
The paid for right, given by a "parent company", to sell a go…
Corporations
A legal entity owned by individual stockholders, each of whom…
Sole Proprietorships
Businesses owned and operated by a single individual; the mos…
31 terms
Microeconomics chapter 8
Business Firm
Market Coordination
Managerial Coordination
Shirking
An entity that employs factors of production (resources) to p…
The process in which individuals perform tasks, such as produ…
The process in which managers direct employees to perform cer…
The behavior of a worker who is putting forth less than the a…
Business Firm
An entity that employs factors of production (resources) to p…
Market Coordination
The process in which individuals perform tasks, such as produ…
24 terms
Chapter 8 - Microeconomics
Pure Competition
Pure Monopoly
Monopolistic Competition
Oligopoly
involves a very large number of firms producing a standardize…
a market structure in which one firm is the sole seller of a…
is characterized by a relatively large number of sellers prod…
involves only a few sellers of a standardized or differentiat…
Pure Competition
involves a very large number of firms producing a standardize…
Pure Monopoly
a market structure in which one firm is the sole seller of a…
22 terms
Microeconomics Group Quiz- Chapter 8
In a perfectly competitive market, mar…
A necessary condition for perfect comp…
In a perfectly competitive market the…
The demand curve for a product produce…
determine
number
elastic
downward
In a perfectly competitive market, mar…
determine
A necessary condition for perfect comp…
number
21 terms
Microeconomics (Chapter 8)
constant returns to scale
cost-plus regulation
hurdle method of price discrimination
increasing returns to scale (or econom…
a production process is said to have constant returns to scal…
a method of regulation under which the regulated firm is perm…
the practice by which a seller offers a discount to all buyer…
a production process is said to have increasing returns to sc…
constant returns to scale
a production process is said to have constant returns to scal…
cost-plus regulation
a method of regulation under which the regulated firm is perm…
15 terms
Principles of Microeconomics - Chapter 8
perfect competition
homogeneous products
total revenue (TR)
marginal revenue (MR)
many (small) firms producing identical products, no firm larg…
products that are indistinguishable from one another
total amount that a firm takes in from sales; price times qua…
added revenue from increasing output by one unit
perfect competition
many (small) firms producing identical products, no firm larg…
homogeneous products
products that are indistinguishable from one another
13 terms
Microeconomics Chapter 8
Market Structure
Perfect Competition or Pure Competition
Price taker
Marginal Revenue
A classification system for the key traits of a market, inclu…
A market structure characterized by:... 1. A large number of sma…
a buyer or seller who cannot affect the market price. Everyon…
extra revenue from the sale of one additional unit of output
Market Structure
A classification system for the key traits of a market, inclu…
Perfect Competition or Pure Competition
A market structure characterized by:... 1. A large number of sma…
14 terms
Principles Of Microeconomics chapter 8
Average Fixed Cost
Average Total Cost
Average Variable Cost
Fixed Cost
Total Fixed Cost/Quantity
Total Cost/ Quantity
Total Variable Cost/Quantity
Any cost that in total does not change when the firm changes…
Average Fixed Cost
Total Fixed Cost/Quantity
Average Total Cost
Total Cost/ Quantity
9 terms
Intro to Microeconomics Chapter 8
the effects of a tax
tax revenue
how tax affects welfare
deadweight loss
a tax on a good places a wedge between the price that buyers…
measures the public benefit from the tax
a tax on a good reduces consumer surplus and producer surplus…
the fall in total surplus that results from a market distorti…
the effects of a tax
a tax on a good places a wedge between the price that buyers…
tax revenue
measures the public benefit from the tax
9 terms
Micro Economics Chapter 8
Consumer Surplus
Deadweaight Loss
Excise Tax
General Rule of Political Economy
the value the consumer gets from buying a product less its pr…
The loss of consumer and producer surplus
a tax levied on a specific good
When small groups are helped by a government action and large…
Consumer Surplus
the value the consumer gets from buying a product less its pr…
Deadweaight Loss
The loss of consumer and producer surplus
21 terms
Principals of Microeconomics Chapter 8
Total Cost
Total Revenue
Total Cost
Explicit Costs
The amount a firm spends in order to produce the goods and se…
The amount a firm receives from the sale of the goods and ser…
The amount a firm spends in order to produce the goods and se…
Tangible out of pocket expenses
Total Cost
The amount a firm spends in order to produce the goods and se…
Total Revenue
The amount a firm receives from the sale of the goods and ser…
14 terms
Economics - Chapter 8
Corporations
Sole Proprietorships
General Partnership
Franchise
A legal entity owned by individual stockholders, each of whom…
Businesses owned and operated by a single individual; the mos…
Partnership in which partners share equally in both responsib…
The paid for right, given by a "parent company", to sell a go…
Corporations
A legal entity owned by individual stockholders, each of whom…
Sole Proprietorships
Businesses owned and operated by a single individual; the mos…
12 terms
Microeconomics Chapter 8
Competition and the Public Interest
The long-run outcome in competitive ma…
Productive Efficiency
Allocative Efficiency
...
Productive efficiency... Allocative Efficiency
Goods are supplied at the lowest possible opportunity cost
The mix of goods and services produced are just what society…
Competition and the Public Interest
...
The long-run outcome in competitive ma…
Productive efficiency... Allocative Efficiency
20 terms
Microeconomics chapter 8
Anchoring
Behavioral economics
Cognitive biases
Dictator game
People's estimates are influenced by recently considered info…
study the effects of psychological, social, cognitive, and em…
Are the misperceptions or misunderstandings that cause system…
Two people, one is the dictator. His job is to split an amoun…
Anchoring
People's estimates are influenced by recently considered info…
Behavioral economics
study the effects of psychological, social, cognitive, and em…
13 terms
Chapter 8 Economics
sole proprietorship
partnership
general partnership
limited partnership
A business owned and managed by a single individual
A business owned by 2 or more people.
A partnership in which the partners have equal responsibility…
A partnership with a general partner that has management resp…
sole proprietorship
A business owned and managed by a single individual
partnership
A business owned by 2 or more people.
19 terms
Chapter 8 Microeconomics
Explicit costs
Implicit costs
Accounting profit
Economic profit
Tangible out-of-pocket expenses
The opportunity costs of doing business
Calculated by subtracting the explicit costs from total revenue
Calculated by subtracting both the explicit and the implicit…
Explicit costs
Tangible out-of-pocket expenses
Implicit costs
The opportunity costs of doing business
26 terms
Microeconomics Chapter 8
Sole Proprietorship
Partnership
Corporation
Assest
A firm owned by a single individual and not organized as a co…
A firm owned jointly by two or more persons and not organized…
A legal form of business that provides owners with protection…
Anything of value owned by a person or a firm
Sole Proprietorship
A firm owned by a single individual and not organized as a co…
Partnership
A firm owned jointly by two or more persons and not organized…
21 terms
Microeconomics chapter 8
fixed costs
short run
variable costs
total fixed costs
any cost the does not depend on the firms level of output ... -t…
exiting firms face limited imposed by some fixed factor of pr…
a cost that depends on the level of production chosen ... -total…
-"overhead" ... -those costs that do not change with output even…
fixed costs
any cost the does not depend on the firms level of output ... -t…
short run
exiting firms face limited imposed by some fixed factor of pr…
11 terms
Microeconomics Chapter 8
Technical Efficiency
Cost Minimization
Principle of Substitution
Long-Run Average Cost Curve
When a given number of inputs are combined in such a way as t…
An implication of profit maximization that firms choose the p…
The principle that methods of production will change if relat…
The curve showing the lowest possible cost of producing each…
Technical Efficiency
When a given number of inputs are combined in such a way as t…
Cost Minimization
An implication of profit maximization that firms choose the p…
10 terms
Microeconomics Chapter 8
Perfect Competition
Average Revenue
Marginal Revenue
Break-Even Output
a market in which all buyers and sellers are price takers
the amount of revenue received per unit sold
the extra revenue derived from the sale of one more unit
the level of output at which the sales revenue of the firm ju…
Perfect Competition
a market in which all buyers and sellers are price takers
Average Revenue
the amount of revenue received per unit sold
18 terms
Microeconomics Chapter 8
Market Failure
Government Failures
Externalities
Negative Externalities
A situation in which the invisible hand pushes in such a way…
When the government intervention in the market to improve the…
The effects of a decision on a third party that are not taken…
Occur when the effects of a decision not taken into account b…
Market Failure
A situation in which the invisible hand pushes in such a way…
Government Failures
When the government intervention in the market to improve the…
14 terms
Microeconomics Chapter 8
Price Setter
Pure Monopoly
Monopolistic Competition
Oligopoly
A firm with at least some latitude to set its price .
the only supplier of a unique product with no close substitut…
An industry structure in which a large number of firms produc…
An industry structure in which a small number of large firms…
Price Setter
A firm with at least some latitude to set its price .
Pure Monopoly
the only supplier of a unique product with no close substitut…
20 terms
Microeconomics chapter 8
Three types of firms
Asset
Unlimited liability
Limited liability
1. Sole proprietorship (firm owned by a single individual and…
anything of value owned by a person or firm
- sole prop. and partnerships have this... - no legal distinctio…
- owners of corporations have this... - can never lose more than…
Three types of firms
1. Sole proprietorship (firm owned by a single individual and…
Asset
anything of value owned by a person or firm
23 terms
Microeconomics Chapter 8
sole proprietorship
partnership
corporation
asset
a firm owned by a single individual and not organized as a co…
a firm owned jointly by two or more persons and not organized…
a legal form of business that provides owners with protection…
anything of value owned by a person or a firm
sole proprietorship
a firm owned by a single individual and not organized as a co…
partnership
a firm owned jointly by two or more persons and not organized…
30 terms
Microeconomics Chapter 8
a ___________ on a good affects its pr…
welfare
both buyers and sellers are _________…
the cost of taxes to buyers and seller…
tax
the economics wellbeing of participants in a market
worse... a tax raises the price buyers pay and lowers the price…
exceeds
a ___________ on a good affects its pr…
tax
welfare
the economics wellbeing of participants in a market
25 terms
Microeconomics: Chapter 8
Principle-Agent Problem
Principle-Agent Problem Goals
Shirking
Three Types of Business
incentive problem that occurs when the purchaser of services…
-hiring someone because they know more than you... -make sure yo…
working at less than the expected rate of productivity which…
1) Sole Proprietorship... 2) Partnership... 3) Corporation
Principle-Agent Problem
incentive problem that occurs when the purchaser of services…
Principle-Agent Problem Goals
-hiring someone because they know more than you... -make sure yo…
23 terms
Microeconomics Chapter 8
Profits and Losses
Total Revenue
Total Cost
Explicit Costs
are determined by calculating the difference between expenses…
is the amount a firm receives from the sale of the goods and…
is the amount a firm spends in order to produce the goods and…
are tangible out of pocket expenses
Profits and Losses
are determined by calculating the difference between expenses…
Total Revenue
is the amount a firm receives from the sale of the goods and…
Microeconomics Chapter 8
Residual demand curve
Economic profit
Marginal profit
Marginal revenue (MR)
the market demand that is not met by other sellers at any giv…
revenue - opportunity cost
the change in profit a firm gets from selling one more unit o…
the change in revenue a firm gets from selling one more unit…
Residual demand curve
the market demand that is not met by other sellers at any giv…
Economic profit
revenue - opportunity cost
Chapter 8- Microeconomics
average fixed cost (AFC)
average total cost (ATC)
average variable cost (AVC)
fixed cost
total fixed cost divided by the number of units of output; a…
total cost divided by the number of units of output
total variable cost divided by the number of units of output
any cost that does not depend of the firm's level of output.…
average fixed cost (AFC)
total fixed cost divided by the number of units of output; a…
average total cost (ATC)
total cost divided by the number of units of output
11 terms
Microeconomics terms chapter 8
externality
positive externality
negative externality
internalizing externalities
a benefit or cost from consumption or production that spills…
when benefits spill over to an outside party who is not invol…
when costs spill over to an outside party who is not involved…
changing incentives so people will take into account the effe…
externality
a benefit or cost from consumption or production that spills…
positive externality
when benefits spill over to an outside party who is not invol…
8 terms
Microeconomics Chapter 8
parity
price ceiling
price floor
rent control
the ratio of prices received by farmers for their output to t…
a legislated amount above which the market price is not allow…
a legislated amount below which the market price is not allow…
a price ceiling on the rents that landlords can charge low-in…
parity
the ratio of prices received by farmers for their output to t…
price ceiling
a legislated amount above which the market price is not allow…
13 terms
Microeconomics Chapter 8
production possibilities curve (PPC)
comparative advantage
absolute advantage
terms of trade
shows the relationship between the maximum production of one…
the ability of an individual, firm, or country to produce a c…
ability of an individual, firm, or country to produce more of…
the negotiated exchange rate of goods for goods
production possibilities curve (PPC)
shows the relationship between the maximum production of one…
comparative advantage
the ability of an individual, firm, or country to produce a c…
46 terms
Microeconomics: Chapter 8
What are the four major market structu…
Perfect Competition
Monopolistic Competition
Oligopoly
1. Perfect Competition... 2. Monopolistic Competition... 3. Oligopo…
Very many firms and sellers, identical (homogenous) products,…
Many firms, differentiated products, minor barriers to entry…
A few number of firms, identical or differentiated products,…
What are the four major market structu…
1. Perfect Competition... 2. Monopolistic Competition... 3. Oligopo…
Perfect Competition
Very many firms and sellers, identical (homogenous) products,…
10 terms
Microeconomics Chapter 8
Behavioral economics
Budget line
Consumer equilibrium
Diminishing marginal utility
a branch of economics that studies the ways in which limits o…
the limit which marks the boundary between those combinations…
a situation in which a consumer has allocated all of his or h…
the tendency for marginal utility to decrease as the consumpt…
Behavioral economics
a branch of economics that studies the ways in which limits o…
Budget line
the limit which marks the boundary between those combinations…
13 terms
Microeconomics Chapter 8
behavioral economics
The conflict between plans and actions…
One theory on why individuals give in…
time inconsistency
studies why individuals appear to act irrationally by studyin…
-time consistency... -competing selves... -commitment
1. What we would like to want in the future ... 2. What we will…
When individuals change their minds about what they want simp…
behavioral economics
studies why individuals appear to act irrationally by studyin…
The conflict between plans and actions…
-time consistency... -competing selves... -commitment
11 terms
Microeconomics Chapter 8 Vocabulary
market structure analysis
profit maximizing rule
normal profits
price taker
By observing a few industry characteristics such as number of…
Firms maximize profit by producing output where MR = MC. No o…
The return on capital necessary to keep investors satisfied a…
Individual firms in perfectly competitive markets get their p…
market structure analysis
By observing a few industry characteristics such as number of…
profit maximizing rule
Firms maximize profit by producing output where MR = MC. No o…
12 terms
Chapter 8 Microeconomics
pure competition
pure monopoly
monopolistic competition
oligopoly
A market structure in which a very large number of firms sell…
A market structure in which one firm sells a unique product i…
A market structure in which many firms sell a differentiated…
A market structure in which a few firms sell either a standar…
pure competition
A market structure in which a very large number of firms sell…
pure monopoly
A market structure in which one firm sells a unique product i…
9 terms
Microeconomics: Chapter 8
Taxes- Deadweight Loss
Total Tax Revenue
Why do taxes cause deadweight loss?
What determines if deadweight loss is…
Push away from natural equilibrium and drive a wedge between…
Size of the tax times the Quantity of the good sold
Because they prevent buyers and sellers from realizing some o…
Elasticity
Taxes- Deadweight Loss
Push away from natural equilibrium and drive a wedge between…
Total Tax Revenue
Size of the tax times the Quantity of the good sold
Economics Microeconomics Chapter 5
Price Elasticity of Demand
Price Elasticity of Demand Formula
Factors that Determine price elasticit…
Necessities vs luxuries
a measure of how much the qd of a good responds to a change i…
percentage change in QD/percentage change in P... find it by... e…
-necessities vs luxuries... -many close substitutes vs few close…
Necessities tend to have inelastic demands, where as luxuries…
Price Elasticity of Demand
a measure of how much the qd of a good responds to a change i…
Price Elasticity of Demand Formula
percentage change in QD/percentage change in P... find it by... e…
20 terms
Microeconomics Chapter 8
Types of Market Structure
The Meaning of Monopoly
Why Do Monopolies Exist?
Increasing Returns to Scale and Natura…
-In the real world, there are many different markets. ... -To un…
-A monopolist is a firm that is the only producer of a good t…
-A monopolist has market power, which results in higher price…
-A natural monopoly exists when increasing returns to scale p…
Types of Market Structure
-In the real world, there are many different markets. ... -To un…
The Meaning of Monopoly
-A monopolist is a firm that is the only producer of a good t…
13 terms
Microeconomics (Chapter 8)
Fixed costs
Variable costs
Marginal cost
Law of diminishing returns in relation…
Do not vary with quantity of output produced
Do change as firm alters quantity of output produced
-Amnt total cost increases when firm increases production by…
Adding more input = lower per-unit returns = increase cost/unit
Fixed costs
Do not vary with quantity of output produced
Variable costs
Do change as firm alters quantity of output produced
31 terms
Microeconomics Chapter 8
Total revenue
marginal revenue
marginal product of labor
marginal product of capital
1) amount that consumers pay and sellers receive for a good…
amount received from each additional
change in output associated with adding one additional worker
...
Total revenue
1) amount that consumers pay and sellers receive for a good…
marginal revenue
amount received from each additional
21 terms
Microeconomics Chapter 8
neoclassical economics
behavioral economics
rational
systematic errors
The dominant and conventional branch of economic theory that…
The branch of economic theory that combines insights from eco…
...
Suboptimal choices that 1) are not rational because they do n…
neoclassical economics
The dominant and conventional branch of economic theory that…
behavioral economics
The branch of economic theory that combines insights from eco…
22 terms
Microeconomics Chapter 8.5
Constant Cost Industry
Increasing Cost Industry
Decreasing Cost Industry
Equilibrium is Disturbed
Small Buyer in Inputs Market ... No Change in ATC
Large Buyer in Inputs Market ... Normal ... Increased Demand = Incr…
Large Input Buyer ... Creates Economies of Scale ... Decreased Dema…
When Products Increase or Decrease in Demand
Constant Cost Industry
Small Buyer in Inputs Market ... No Change in ATC
Increasing Cost Industry
Large Buyer in Inputs Market ... Normal ... Increased Demand = Incr…
16 terms
Microeconomics- Chapter 8 Vocabulary
market structure
perfect competition
commodity
price taker
important feature of a market, such as the number of firms, p…
a market structure with many fully informed buyers and seller…
a standardized product, a product that does not differ across…
a firms that faces a given market price and whose quantity su…
market structure
important feature of a market, such as the number of firms, p…
perfect competition
a market structure with many fully informed buyers and seller…
13 terms
Economics - Chapter 8
Corporations
Sole Proprietorships
General Partnership
Franchise
A legal entity owned by individual stockholders, each of whom…
Businesses owned and operated by a single individual; the mos…
Partnership in which partners share equally in both responsib…
The paid for right, given by a "parent company", to sell a go…
Corporations
A legal entity owned by individual stockholders, each of whom…
Sole Proprietorships
Businesses owned and operated by a single individual; the mos…
37 terms
Microeconomics Chapter 8
A tax on a good has a deadweight loss if
deadweight loss
Taxes cause deadweight losses because…
If demand is downward sloping and supp…
the reduction in consumer and producer surplus is greater tha…
The fall in total surplus that results when a tax (or some ot…
trade
rises
A tax on a good has a deadweight loss if
the reduction in consumer and producer surplus is greater tha…
deadweight loss
The fall in total surplus that results when a tax (or some ot…
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