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Study sets matching "microeconomics chapter 10"

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Study sets matching "microeconomics chapter 10"

18 terms
Microeconomics Group Quiz- Chapter 10
A
C
C
C
A
C
14 terms
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
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…
22 terms
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…
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
6 terms
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…
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…
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…
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
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…
16 terms
Microeconomics Chapter 10
utility
consumption bundle
utility function
util
a measure of the satisfaction the consumer derives from consu…
the collections of all the goods and services consumed by tha…
gives the total utility generated by an individual's consumpt…
unit of utility... A cookie is worth 100 utils for me.
utility
a measure of the satisfaction the consumer derives from consu…
consumption bundle
the collections of all the goods and services consumed by tha…
25 terms
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…
12 terms
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…
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…
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 (…
13 terms
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…
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…
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…
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…
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…
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…
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
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
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…
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…
11 terms
Microeconomics - Chapter 10 - Monopoly
monopoly
monopoly firm (monopolist)
barrier to entry
natural monopoly
A market structure in which there is a single supplier of a p…
A single supplier of a product for which there are no close s…
Anything that impedes the ability of firms to begin a new bus…
A monopoly that arises from economies of scale.
monopoly
A market structure in which there is a single supplier of a p…
monopoly firm (monopolist)
A single supplier of a product for which there are no close s…
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
Monopolistic Competition
Oligopoly
Undifferentiated Oligopoly
Differentiated Oligopoly
A market structure with many firms selling products that are…
A market structure characterized by so few firms that each be…
An oligopoly that sells a commodity, or a product that does n…
An oligopoly that sells products that differ across suppliers…
Monopolistic Competition
A market structure with many firms selling products that are…
Oligopoly
A market structure characterized by so few firms that each be…
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
25 terms
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…
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
13 terms
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…
12 terms
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…
5 terms
Microeconomics- Chapter 10
Externality
internalizing the externality
corrective tax
coase theorem
uncompensated impact of one person's actions on the well-bein…
altering incentives so that people take account of their exte…
tax designed to induce private decision makers to take accoun…
proposition that if private parties can bargain without cost…
Externality
uncompensated impact of one person's actions on the well-bein…
internalizing the externality
altering incentives so that people take account of their exte…
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…
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…
48 terms
Chapter 10-12 Microeconomics
Atomicity
Product homogeneity
Perfect information
Equal access
there are many suppliers in the market:... ~Each supplier has no…
the product supplied by the different firms is the same
firms and consumers know the prices set by all firms.
all firms have access to all production technologies
Atomicity
there are many suppliers in the market:... ~Each supplier has no…
Product homogeneity
the product supplied by the different firms is the same
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
12 terms
Microeconomics Chapter 10
Monopoly
Public Franchise
Natural Monopoly
Price Searcher
A theory of market structure based on three assumptions: Ther…
A right granted to a firm by government that permits the firm…
The condition where economies of scale are so pronounced that…
A seller that has the ability to control to some degree the p…
Monopoly
A theory of market structure based on three assumptions: Ther…
Public Franchise
A right granted to a firm by government that permits the firm…
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…
11 terms
Principles of Microeconomics Chapter 10
Demand-determined price
Derived demand
Factor substitution
Marginal product of labor
The price of a good that is in fixed supply; it is determined…
Demand for a resource, such as labor, based on the demand for…
The substitution of capital good to labor. This would happen…
The change in output from hiring one additional unit of labor.
Demand-determined price
The price of a good that is in fixed supply; it is determined…
Derived demand
Demand for a resource, such as labor, based on the demand for…
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
9 terms
Microeconomics (Irvin B. Tucker) Chapter 10 terms
Monopolistic competition
Product differentiation
Non-price competition
Oligopoly
a market structure characterized by (1) many small sellers, (…
The process of creating real or apparent differences between…
The situation in which a firm competes using advertising, pac…
A market structure characterized by (!0 few sellers, (20 eith…
Monopolistic competition
a market structure characterized by (1) many small sellers, (…
Product differentiation
The process of creating real or apparent differences between…
9 terms
Microeconomics Chapter 10
monopolistic competition
product differentiation
excess capacity
oligopoly
-a market structure with many firms selling products that are…
-products differentiate themselves in four basic ways:... 1. phy…
the difference between a firm's profit-maximizing quantity an…
a market structure characterized by a few firms whose behavio…
monopolistic competition
-a market structure with many firms selling products that are…
product differentiation
-products differentiate themselves in four basic ways:... 1. phy…
8 terms
Microeconomics Chapter 10
Perfect Competition
Price Taker
Total Revenue
Marginal Revenue
A market in which... 1) Many firms sell identical products to ma…
A firm that cannot influence the market price because its pro…
Equals the price of its output multiplied by the number of un…
The change in total revenue that results from a one-unit incr…
Perfect Competition
A market in which... 1) Many firms sell identical products to ma…
Price Taker
A firm that cannot influence the market price because its pro…
13 terms
Microeconomics chapter 10
buying goods with the largest marginal…
the marginal utility per $ spent on al…
the tendency of people to be unwilling…
consumers see it as fair for firms to…
Consumers maxamize total utiltiy within their budget contrain…
If a consumer always buys goods rationally, then
What is the endownment effect
Airlines were explicitly able to include a fuel surchange in…
buying goods with the largest marginal…
Consumers maxamize total utiltiy within their budget contrain…
the marginal utility per $ spent on al…
If a consumer always buys goods rationally, then
13 terms
Microeconomics chapter 10
buying goods with the largest marginal…
the marginal utility per $ spent on al…
the tendency of people to be unwilling…
consumers see it as fair for firms to…
Consumers maxamize total utiltiy within their budget contrain…
If a consumer always buys goods rationally, then
What is the endownment effect
Airlines were explicitly able to include a fuel surchange in…
buying goods with the largest marginal…
Consumers maxamize total utiltiy within their budget contrain…
the marginal utility per $ spent on al…
If a consumer always buys goods rationally, then
17 terms
Microeconomics Chapter 10 Vocab
firm
depreciation
economic profit
implicit rental rate
an institution that hires factors of production and organizes…
the fall in the value of a firm's capital
total revenue minus total cost, with total cost measured as t…
the firm's opportunity cost of using the capital it owns
firm
an institution that hires factors of production and organizes…
depreciation
the fall in the value of a firm's capital
12 terms
Microeconomics Chapter 10
Utility
Marginal Utility (MU)
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 (MU)
The change in total utility a person receives from consuming…
10 terms
Microeconomics Chapter 10
Utility
Marginal utility (MU)
Law of diminishing marginal utility
Budget constraint
The enjoyment of 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 of satisfaction people receive from consuming g…
Marginal utility (MU)
The change in total utility a person receives from consuming…
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