Study sets matching "microeconomics chapter 10"

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Study sets matching "microeconomics chapter 10"

Microeconomics Chapter 10
externality
private cost
private value
social cost
the uncompensated impact of one person's actions on the well-…
the costs directly incurred by sellers
the value to buyers (the prices they are willing to pay)
private + external cost
externality
the uncompensated impact of one person's actions on the well-…
private cost
the costs directly incurred by sellers
Microeconomics Chapter 10
Monopolistic competition is characteri…
MR: Monopolistic Competition
Product Differentiation
Advertising
- A large number of small firms ... - Easy entry and exit of fir…
- Downward sloping demand and MR curve (Product differentiati…
One firm's product is distinguished from another's through ad…
- Two ways: informational and persuasive ... - The informational…
Monopolistic competition is characteri…
- A large number of small firms ... - Easy entry and exit of fir…
MR: Monopolistic Competition
- Downward sloping demand and MR curve (Product differentiati…
Chapter 10: Microeconomics
Utility
Marginal Utility
Law of Diminishing Marginal Utitlty
Budget Constraint
The enjoyment or satisfaction people receive from consuming g…
The change in total utility a person receives from consuming…
The principle that consumers experience diminishing additiona…
The limited amount of income available to consumer to spend o…
Utility
The enjoyment or satisfaction people receive from consuming g…
Marginal Utility
The change in total utility a person receives from consuming…
15 terms
Microeconomics (Chapter 10)
Coase theorem
external benefit (or positive external…
external cost
externality
if at no cost people can negotiate the purchase and sale of t…
a benefit of an activity received by people other than those…
a cost of an activity that falls on people other than those w…
an external cost or benefit of an activity.
Coase theorem
if at no cost people can negotiate the purchase and sale of t…
external benefit (or positive external…
a benefit of an activity received by people other than those…
29 terms
chapter 10 (microeconomics)
monopoly
market power
what is an example of market power
Reasons why monopoly arise
market with one seller and many buyers
an ability to influence the price of a product
patent
1. A single firm may control the entire supply of basic input…
monopoly
market with one seller and many buyers
market power
an ability to influence the price of a product
20 terms
Microeconomics Chapter 10
Luke has $240 to spend on two goods: s…
The budget line identifies all of the…
A budget constraint requires that... A.…
The table above gives Natasha's total…
A. 4... Think about how you would plot this point on a budget c…
A. a consumer can afford at current income.... Along the budget…
C. the cost of the consumer's consumption bundle does not exc…
D. For Natasha, hot chocolate is characterized by diminishing…
Luke has $240 to spend on two goods: s…
A. 4... Think about how you would plot this point on a budget c…
The budget line identifies all of the…
A. a consumer can afford at current income.... Along the budget…
15 terms
Microeconomics Chapter 10
Externality
Negative Externality
Positive Externality
Negative Externality Effects
the uncompensated impact of one person's actions on the well-…
Air pollution from factories,... The neighbor's barking dog,... Noi…
People going to college raise the population's education leve…
Market quantity larger than socially desirable
Externality
the uncompensated impact of one person's actions on the well-…
Negative Externality
Air pollution from factories,... The neighbor's barking dog,... Noi…
11 terms
Microeconomics chapter 10
Utility
Marginal utility
law of diminishing marginal utility
budget constraint
enjoyment or satisfaction that people receive from consuming…
the change in total utility a person receives from consuming…
consumers receive diminishing additional satisfaction as they…
amount of income consumers have available to spend on goods a…
Utility
enjoyment or satisfaction that people receive from consuming…
Marginal utility
the change in total utility a person receives from consuming…
Chapter 10 Intro to Microeconomics
four market models
pure competition
purely competitive demand
pure monopoly
pure competition... pure monopoly... monopolistic competition... oligo…
very large number of sellers, standardized product, easy entr…
perfectly elastic demand, the firm has no power to influence…
one firm, unique product, much control over the price
four market models
pure competition... pure monopoly... monopolistic competition... oligo…
pure competition
very large number of sellers, standardized product, easy entr…
13 terms
Microeconomics Chapter 10
market structure
pure competition
pure monopoly
monopolistic competition
four distinct market industries: pure competition, pure monop…
very large number of firms producing a standardized product (…
one firm is the sole seller of a product or service (ex. loca…
relatively large number of sellers producing differentiated p…
market structure
four distinct market industries: pure competition, pure monop…
pure competition
very large number of firms producing a standardized product (…
18 terms
Microeconomics Group Quiz- Chapter 10
A
C
C
C
A
C
18 terms
Microeconomics: Chapter 10
Externality
Negative externatity
Positive externality
Value
The uncompensated impact of one person's actions on the well-…
Impact on the bystander is adverse. Ex: Consumption--loud mus…
Impact on the bystander is beneficial. Ex: Consumption--impro…
Demand: Private value/ social value (Private value plus exter…
Externality
The uncompensated impact of one person's actions on the well-…
Negative externatity
Impact on the bystander is adverse. Ex: Consumption--loud mus…
15 terms
Microeconomics Chapter 10
Utility
Total Utility
Marginal Utility
Principle of diminishing marginal util…
The pleasure or satisfaction people get from doing or consumi…
Total Satisfaction one gets from consuming a product.
Satisfaction one gets from consuming one additional unit of p…
As you consume more of a good, after some point, the marginal…
Utility
The pleasure or satisfaction people get from doing or consumi…
Total Utility
Total Satisfaction one gets from consuming a product.
10 terms
Microeconomics Chapter 10
utility
marginal utility
law of diminishing marginal utility
budget constraint
the enjoyment or satisfaction people receive from consuming g…
the change in total utility a person receives from consuming…
the principle that consumers experience diminishing additiona…
the limited amount of income available to consumers to spend…
utility
the enjoyment or satisfaction people receive from consuming g…
marginal utility
the change in total utility a person receives from consuming…
7 terms
Microeconomics Chapter 10
Externality
negative externality
positive externality
internalizing the externality
the uncompensated impact of a person's actions on the well-be…
if the impact is preventing success
if the impact is beneficial to a bystander. The social value…
altering incentives so that people take account of the extern…
Externality
the uncompensated impact of a person's actions on the well-be…
negative externality
if the impact is preventing success
Microeconomics Chapter 10 Terms
Technological Change
Pure Rent
Demand-Determined Price
Output Effect of a Factor Price Increa…
The introduction of new methods of production of new products…
The return to any factor of production that is fixed in supply
The price of a good that is in fixed supply; it is determined…
When a firm decreases its output in response to a factor pric…
Technological Change
The introduction of new methods of production of new products…
Pure Rent
The return to any factor of production that is fixed in supply
12 terms
Microeconomics Chapter 10
private cost
external cost
social cost
externalities
a cost paid by the consumer or the producer
a cost paid by people other than the consumer or the producer…
the cost to everyone; the private cost plus the external cost.
external costs or external benefits that fall on bystanders
private cost
a cost paid by the consumer or the producer
external cost
a cost paid by people other than the consumer or the producer…
35 terms
Microeconomics Chapter 10
markets are usually a good way to orga…
government actions can sometimes impro…
externality
negative externality
invisible hand of the marketplace leads self-interested buyer…
markets sometimes fail to allocate resources efficiently... gove…
uncompensated impact of one person's actions of the well-bein…
adverse impact on bystander... EX: exhaust from automobiles, bar…
markets are usually a good way to orga…
invisible hand of the marketplace leads self-interested buyer…
government actions can sometimes impro…
markets sometimes fail to allocate resources efficiently... gove…
8 terms
Microeconomics Chapter 10
Monopoly
Barriers to Entry
Perfect Price Discrimination
Deadweight Loss
a market in which single firm [the monopolist] is the sole pr…
obstacles that make it difficult for new participants to ente…
a situation where customers are chafed the highest price they…
the total surplus lost relative to an efficient market due to…
Monopoly
a market in which single firm [the monopolist] is the sole pr…
Barriers to Entry
obstacles that make it difficult for new participants to ente…
Microeconomics Chapter 10
monopoly
natural monopoly
patent
copyright
the only seller in a market, or a market with just one seller
a monopoly that arises when due to economies of scale, a sing…
a temporary grant of monopoly rights over a new product or sc…
a grant of exclusive rights to sell a literary, musical, or a…
monopoly
the only seller in a market, or a market with just one seller
natural monopoly
a monopoly that arises when due to economies of scale, a sing…
21 terms
Microeconomics Chapter 10
Command system
Economic depreciation
Economic efficiency
Economic profit
a method of organizing production that uses a managerial hier…
the fall in the market value of a firm's capital over a given…
the firm produces a given output at the least cost
total revenue minus total cost, with total cost measured as t…
Command system
a method of organizing production that uses a managerial hier…
Economic depreciation
the fall in the market value of a firm's capital over a given…
Microeconomics chapter 10
average revenue
break-even point
imperfect competition
market structure
Total revenue from the scale of a product divided by the quan…
An output at which a firm makes a normal profit (total revenu…
All market structures except pure competition; includes monop…
The characteristics of an industry that define the likely beh…
average revenue
Total revenue from the scale of a product divided by the quan…
break-even point
An output at which a firm makes a normal profit (total revenu…
14 terms
Microeconomics Chapter 10
Basic elements of a game
Payoff matrix
Dominant strategy
Dominated strategy
1. Players. 2. Their strategies, opinions, or decisions avail…
A table that shows the payoffs that each firm earns from ever…
A strategy that is best for a player in a game regardless of…
A strategy giving lower payoffs than an alternative strategy…
Basic elements of a game
1. Players. 2. Their strategies, opinions, or decisions avail…
Payoff matrix
A table that shows the payoffs that each firm earns from ever…
18 terms
Microeconomics chapter 10
Pure competition
Pure Monopoly
Monopolistic Competition
Oligopoly
Has a very large number of sellers, no control over pricing,…
Has only one seller, products are unique and have no substitu…
Has many sellers in market, differentiated products, have som…
Has few sellers in market, have standardized or differentiate…
Pure competition
Has a very large number of sellers, no control over pricing,…
Pure Monopoly
Has only one seller, products are unique and have no substitu…
16 terms
Microeconomics Chapter 10
utility
consumption bundle
utility function
util
(of a consumer) a measure of the satisfaction the consumer de…
(of an individual) the collection of all the goods and servic…
(of an individual) The relationship between an individual's c…
a unit of utility
utility
(of a consumer) a measure of the satisfaction the consumer de…
consumption bundle
(of an individual) the collection of all the goods and servic…
11 terms
Microeconomics Chapter 10
complete information
information asymmetry
adverse selection
principal
state of being fully informed about the choices that relevant…
a condition in which one person knows more than another
a state that occurs when buyers and sellers have different in…
a person who entrusts someone with a task
complete information
state of being fully informed about the choices that relevant…
information asymmetry
a condition in which one person knows more than another
9 terms
Microeconomics Chapter 10 Vocabulary
monopolistic competition
product differentiation
product differentiation
excess capacity
a market's structure with many firms selling products that ar…
difference between products
physical ... location ... services... product image... environmentally fr…
the difference between a firms profit maximizing quantity and…
monopolistic competition
a market's structure with many firms selling products that ar…
product differentiation
difference between products
26 terms
Microeconomics Chapter 10
Externality
Negative externatility
Positive externality
Social Cost
when a person engages in an activity that influences the well…
impact on the bystander is adverse
beneficial to the bystander
Private cost of the producers plus the costs to those bystand…
Externality
when a person engages in an activity that influences the well…
Negative externatility
impact on the bystander is adverse
53 terms
Microeconomics Chapter 10-book notes: Monopoly
LO1 Define a monopoly explain how mono…
A firm is a monopolist if it is the s_…
There is no competition for the monopo…
In a market economy, private ownership…
reduce
sole
power
freedom
LO1 Define a monopoly explain how mono…
reduce
A firm is a monopolist if it is the s_…
sole
5 terms
Microeconomics Chapter 10 Terms
Externality
Internalizing the Externality
Corrective Tax
Coase Theorem
The uncompensated impact of one person's actions on the well-…
Altering incentives so that people take account of the extern…
A tax designed to induce private decision makers to take acco…
The proposition that if private parties can bargain without c…
Externality
The uncompensated impact of one person's actions on the well-…
Internalizing the Externality
Altering incentives so that people take account of the extern…
23 terms
Microeconomics Chapter 10
True or False?
Externality
Negative Externality
Positive Externality
Government action can sometimes improve upon market outcomes.
Uncompensated impact of one person's action on the well being…
Impact on the bystander is adverse. ... - Cost to society of pro…
Impact on the bystander is beneficial.
True or False?
Government action can sometimes improve upon market outcomes.
Externality
Uncompensated impact of one person's action on the well being…
Microeconomics Chapter 10
Perfect competition
Price takers
Marginal Revenue
Profit Maximizing Point is where
Each firm faces many competitors that sell identical products
A firm in a perfectly competitive market that must take the p…
The additional revenue gained from selling one more unit
the marginal revenue line and the marginal cost line cross.
Perfect competition
Each firm faces many competitors that sell identical products
Price takers
A firm in a perfectly competitive market that must take the p…
32 terms
Microeconomics: Chapter 10
Monopolistic Competition
Collude
Cartel
Game theory
A market structure with many firms selling differentiated pro…
When firms acts together to restrict competition.
A collection of firms that agree on sales, pricing, and other…
Firms attempt to maximize profits by acting in ways that mini…
Monopolistic Competition
A market structure with many firms selling differentiated pro…
Collude
When firms acts together to restrict competition.
Intermediate Microeconomics Chapter 10
Arbitrage
Direct price discrimination
Perfect price discrimination (first-de…
Segmenting (third-degree price discrim…
The practice of reselling a product at a price higher than it…
A pricing strategy in which firms charge different prices to…
A type of direct price discrimination in which a firm charges…
A type of direct price discrimination in which a firm charges…
Arbitrage
The practice of reselling a product at a price higher than it…
Direct price discrimination
A pricing strategy in which firms charge different prices to…
13 terms
AP Microeconomics - Chapter 10
utility
consumption bundle
Utility function
Marginal utility curve
a measure of the satisfaction the consumer derives from the c…
the collection of all the goods and services consumed by that…
the total utility generated by his/her consumption bundle... Co…
shows how marginal utility depends on the quantity of a good…
utility
a measure of the satisfaction the consumer derives from the c…
consumption bundle
the collection of all the goods and services consumed by that…
22 terms
Microeconomics Chapter 10
Define relevant market.
What is the equation for cross elastic…
A relevant market is made up of...
The relevant market can be defined ___…
The set of good whose cross elasticities with others in the s…
substitute goods.
Narrowly or broadly.
Define relevant market.
The set of good whose cross elasticities with others in the s…
What is the equation for cross elastic…
16 terms
AP Microeconomics Chapter 10
Utility
Consumption Bundle
Utility Function
Util
A measure of the satisfaction the consumer derives from the c…
The collection of all the goods and services consumed by that…
A function of the total utility generated by his or her consu…
A unit of utility... Connection: Consuming one bag of gummy bea…
Utility
A measure of the satisfaction the consumer derives from the c…
Consumption Bundle
The collection of all the goods and services consumed by that…
Principals Of Microeconomics Chapter 10
Monopoly Power
Barriers to entry
Natural Barriers to entry include.
Natural Monopoly
measures the abilities of firms to set the price for a good
restrictions that make it difficult for new firms to enter th…
1. Control of resources... 2. Problems with raising capital... 3. E…
Occurs when a single large firm has lower costs than any poss…
Monopoly Power
measures the abilities of firms to set the price for a good
Barriers to entry
restrictions that make it difficult for new firms to enter th…
14 terms
AP MICROECONOMICS: Chapter 10
2 things that determine what people do
Utility
Total utility (TU)
Marginal utility (MU)
Utility and price
Pleasure people get from doing or consuming something
Total Satisfaction one gets from consuming a product
Satisfaction you get from the consumption of one additional u…
2 things that determine what people do
Utility and price
Utility
Pleasure people get from doing or consuming something
Chapter 10 Intro to Microeconomics
four market models
pure competition
purely competitive demand
pure monopoly
pure competition... pure monopoly... monopolistic competition... oligo…
very large number of sellers, standardized product, easy entr…
perfectly elastic demand, the firm has no power to influence…
one firm, unique product, much control over the price
four market models
pure competition... pure monopoly... monopolistic competition... oligo…
pure competition
very large number of sellers, standardized product, easy entr…
17 terms
Microeconomics Chapter 10
Monopolistic Competition
Excess Capacity
Oligopoly
Undifferentiated Oligopoly
A market structure with many firms selling products that are…
The difference between a firm's profit-maximizing quantity an…
A market structure characterized by so few firms that each be…
An oligopoly that sells a commodity, or a product that does n…
Monopolistic Competition
A market structure with many firms selling products that are…
Excess Capacity
The difference between a firm's profit-maximizing quantity an…
Microeconomics Chapter 10
Coase Theorem
Corrective Taxes
Internalizing the Externality
Externality
The proposition that if private parties can bargain without c…
A tax designed to induce private decision makers to take acco…
Altering incentives so that people take account of the extern…
The uncompensated impact of one person's actions on the well-…
Coase Theorem
The proposition that if private parties can bargain without c…
Corrective Taxes
A tax designed to induce private decision makers to take acco…
8 terms
Microeconomics Chapter 10
Externality
Positive Externality
Negative Externality
Social Cost
The uncompensated impact of one persons actions on the well b…
A situation when a person's actions have a beneficial impact…
A situation when a person's actions have an adverse impact on…
The sum of private costs and external costs
Externality
The uncompensated impact of one persons actions on the well b…
Positive Externality
A situation when a person's actions have a beneficial impact…
18 terms
Microeconomics Chapter 10
complete information
information asymmetry
adverse selection
well-known example of adverse selection
state of being fully informed about the choices that relevant…
a condition in which one person knows more than another
a state that occurs when buyers and sellers have different in…
"lemons" problem in the used car market
complete information
state of being fully informed about the choices that relevant…
information asymmetry
a condition in which one person knows more than another
13 terms
Microeconomics Chapter 10 (Externalities)
externality
internalizing the externality
market based policies... =corrective tax
Coase theorem
the uncompensated impact of one person's actions on the well-…
altering incentives so that people take account of the extern…
a tax designed to induce private decision makers to take acco…
the proposition that if private parties can bargain without c…
externality
the uncompensated impact of one person's actions on the well-…
internalizing the externality
altering incentives so that people take account of the extern…
13 terms
Microeconomics Chapter 10 Vocab
Average Revenue
Break-Even Point
Imperfect Competition
Marginal Revenue
Total revenue from the sale of a product divided by the quant…
Any output at which a (competitive) firm's total cost and tot…
All market structures except pure competition; includes monop…
The change in total revenue that results from the sale of 1 a…
Average Revenue
Total revenue from the sale of a product divided by the quant…
Break-Even Point
Any output at which a (competitive) firm's total cost and tot…
32 terms
Microeconomics Chapter 10
what 2 things could change that would…
if income changes from $10 to $14, wha…
what could you change if your income g…
there are 2 types of goods, what are t…
- income... -change in the price of goods
it would shift outward and parallel
you could increase pizza and increase coke... you could increas…
1. normal good... 2. inferior good
what 2 things could change that would…
- income... -change in the price of goods
if income changes from $10 to $14, wha…
it would shift outward and parallel
13 terms
Chapter 10: Microeconomics
microeconomics
scarcity
land
labor
The study of economics on a small scale, within the private s…
The driving force behind all economics - there isn't enough o…
Includes not only dirt, but also natural resources (lumber, m…
Refers to people, both our physical, but also our mental work…
microeconomics
The study of economics on a small scale, within the private s…
scarcity
The driving force behind all economics - there isn't enough o…
Microeconomics Chapter 10
competitive price searcher market
Differentiated products
Monopolisitic competition
contestable market
low entry barriers and firms with a downward sloping curve
products distinguished from similar products by characteristi…
large number of sellers that supply differentiated products t…
Market which the costs of entry and exit are low so a firm ri…
competitive price searcher market
low entry barriers and firms with a downward sloping curve
Differentiated products
products distinguished from similar products by characteristi…
Microeconomics Chapter 10
externality
internalizing the externality
corrective tax
coase theorem
the uncompensated impact of one person's actions on the well-…
altering incentives so that people take account of the extern…
a tax designed to induce private decision makers to take acco…
the proposition that if private parties can bargain without c…
externality
the uncompensated impact of one person's actions on the well-…
internalizing the externality
altering incentives so that people take account of the extern…
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