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Study sets matching "microeconomics chapter 14"

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Study sets matching "microeconomics chapter 14"

30 terms
Microeconomics Chapter 14
TR / Q
1. many buyers and many sellers.... 2. th…
price taker
total revenue (TR)
average revenue equation
characteristics of perfect competition.
takes the price as given.
P x Q
TR / Q
average revenue equation
1. many buyers and many sellers.... 2. th…
characteristics of perfect competition.
20 terms
Microeconomics Chapter 14
An industry with only a few sellers is…
A duopoly is... A. an industry with two…
If two firms form a cartel to maximize…
Collusion within an oligopoly... A. is a…
B. an oligopoly.... An oligopoly has distinctive competitive ch…
A. an industry with two firms.... The commercial jet-plane indu…
C. they should choose to produce at the monopoly outcome.... IN…
B. leads to higher overall profits.... If the two firms can enf…
An industry with only a few sellers is…
B. an oligopoly.... An oligopoly has distinctive competitive ch…
A duopoly is... A. an industry with two…
A. an industry with two firms.... The commercial jet-plane indu…
30 terms
Microeconomics Chapter 14 & 15
T/F: The more differentiated the produ…
- A monopolistically competitive firm…
- Consider this statement: "The Beatle…
- There is easy entry into the _______…
TRUE
o Variable costs
All of the above
o Perfectly competitive... o Monopolistically competitive
T/F: The more differentiated the produ…
TRUE
- A monopolistically competitive firm…
o Variable costs
19 terms
Microeconomics Chapter 14
Vertical Integration
Outsourcing
Core Competency
Bounded Rationality
The expansion of a firm into stages of production earlier or…
A firm buys inputs from outside suppliers
Area of specialty; the product or phase of production a firm…
The notion that there is a limit to the information that a fi…
Vertical Integration
The expansion of a firm into stages of production earlier or…
Outsourcing
A firm buys inputs from outside suppliers
16 terms
Microeconomics Chapter 14
oligopoly
barrier to entry
economies of scale
patent
a market structure in which a small number of interdependent…
anything that keeps new firms from entering an industry in wh…
the situation when a firm's long-run average costs fall as th…
the exclusive right to a product for a period of 20 years fro…
oligopoly
a market structure in which a small number of interdependent…
barrier to entry
anything that keeps new firms from entering an industry in wh…
11 terms
microeconomics chapter 14
monopoly
barriers to entry
monopoly maximizes profit
if MR>MC
market structure in which one firm makes up the entire market
-legal... -sociological... -natural... -technological
when marginal rev=marginal cost
monopoly can increase profit by increasing output
monopoly
market structure in which one firm makes up the entire market
barriers to entry
-legal... -sociological... -natural... -technological
15 terms
Microeconomics Chapter 14
oligopoly
barrier to entry
economics of scale
patent
a market structure in which a small number of interdependent…
anything that keeps new firms from entering an industry in wh…
the situation when a firm's long-run average costs fall as th…
the exclusive right to a product for a period of 20 years fro…
oligopoly
a market structure in which a small number of interdependent…
barrier to entry
anything that keeps new firms from entering an industry in wh…
25 terms
Microeconomics chapter 14 vocab
Explicit Cost
Implicit Cost
Economic depreciation
Normal profit
Cost paid in money
An opportunity cost incurred by a firm when it uses a factor…
an opportunity cost of a firm using capital that it owns -- m…
the return to entrepreneurship
Explicit Cost
Cost paid in money
Implicit Cost
An opportunity cost incurred by a firm when it uses a factor…
21 terms
Microeconomics Chapter 14
Monopoly
Barriers to Entry
The Key Difference Between a Monopoli…
The Goal of a Monopolistic Firm
a market structure in which one firm makes up the entire mark…
Barriers to entry into the market prevent competition... Barrier…
A monopolistic firm's marginal revenue is not its price.... Marg…
The goal of the monopolistic firm is to maximize profits, the…
Monopoly
a market structure in which one firm makes up the entire mark…
Barriers to Entry
Barriers to entry into the market prevent competition... Barrier…
9 terms
Microeconomics Chapter 14
oligopoly
five forces model
competitive market
characteristics of the existing firms…
industry dominated by a few firms that, by virtue of their in…
helps us understand the five competition forces that determin…
so full of competitors that no individual firm needs to think…
number and size distribution... amount of product differentiation
oligopoly
industry dominated by a few firms that, by virtue of their in…
five forces model
helps us understand the five competition forces that determin…
33 terms
Chapter 14- Microeconomics
Monopoly
Trademarks
Barriers to entry examples-
a monopolistic firm's marginal revenue…
is a market structure in which one firm makes up the entire m…
help preserve a monopoly with restricting logos, design or dr…
Patents... Restricted rights of where to sell... licenses....barrie…
price
Monopoly
is a market structure in which one firm makes up the entire m…
Trademarks
help preserve a monopoly with restricting logos, design or dr…
Microeconomics Chapter 14
Concentration Ratio
Contestable Markets
Cartel
Tacit Collusions
The share of industry output in sales or employment accounted…
Markets in which entry and exit are easy enough to hold price…
A group of firms that gets together and makes joint price and…
Collusion occurs when price- and quantity-fixing agreements a…
Concentration Ratio
The share of industry output in sales or employment accounted…
Contestable Markets
Markets in which entry and exit are easy enough to hold price…
39 terms
Microeconomics - Chapter 14
oligopoly
concentration ratio
concentration ratio problems
barriers to entry
small number of interdependent firms compete. Large firms aff…
measure the fraction of each industrustries sale by top four…
does not deal with foreign firms, local competition, or compe…
economies of scale, ownership of key input, gov't imposed bar…
oligopoly
small number of interdependent firms compete. Large firms aff…
concentration ratio
measure the fraction of each industrustries sale by top four…
19 terms
Microeconomics Chapter 14
Competitive Market
Average revenue
Marginal revenue
the competitive firm's supply curve
sometimes called perfectly competitive market, has many buyer…
total revenue/the amount of output, equals the price of the g…
change in total revenue from the sale of each additional unit…
the marginal cost curve is also
Competitive Market
sometimes called perfectly competitive market, has many buyer…
Average revenue
total revenue/the amount of output, equals the price of the g…
15 terms
Microeconomics Chapter 14
government intervention... aggressive bus…
natural monopoly
downard
marginal revenue
monopolistic barriers to entry
a market in which a single firm can produce, at a lower cost…
A monopolist faces a ________sloping market demand curve.
A monopolists _____ is not equal to price.
government intervention... aggressive bus…
monopolistic barriers to entry
natural monopoly
a market in which a single firm can produce, at a lower cost…
23 terms
Microeconomics Chapter 14
oligopoly
oligopolist
imperfect competition
duopoly
an industry with only a small number of producers
a firm in such an industry
What an industry is characterized by when no one firm has a m…
An oligopoly consisting of only two firms
oligopoly
an industry with only a small number of producers
oligopolist
a firm in such an industry
11 terms
Microeconomics: Chapter 14
Competitive Market
Average Revenue
Marginal Revenue
Shutdown
A market with many buyers and sellers trading identical produ…
Total revenue divided by the quantity sold.
The change in total revenue from an additional unit sold.
A firm's short-run decision to not produce anything during a…
Competitive Market
A market with many buyers and sellers trading identical produ…
Average Revenue
Total revenue divided by the quantity sold.
15 terms
Microeconomics Chapter 14
Resource pricing is important because:
The MRP curve for labor:
Marginal product is:
The labor demand curve of a firm:
-resource prices, along with resource productivity, are impor…
-is the firms labor demand curve
-the amount an additional worker adds to the firms total output
-will shift to the left if the price of the product the labor…
Resource pricing is important because:
-resource prices, along with resource productivity, are impor…
The MRP curve for labor:
-is the firms labor demand curve
22 terms
Chapter 14 Microeconomics
The Five Competitive Forces Model
Key to firms continuing to earn an eco…
Decision Tree
Fluctuating Oil prices with OPEC
determinants of level of competition in an industry:... 1.) com…
barriers to entry
-used to analyze a sequential game... -boxes represent terminal…
cartel will earn large profits if every member cooperates and…
The Five Competitive Forces Model
determinants of level of competition in an industry:... 1.) com…
Key to firms continuing to earn an eco…
barriers to entry
10 terms
microeconomics chapter 14
competitive market
average revenue
marginal revenue
sunk cost
a market with many buyers and sellers trading identical produ…
total revenue divided by the quantity sold
the change in total revenue from an additional unit sold
a cost that has already been committed and cannot be recovered
competitive market
a market with many buyers and sellers trading identical produ…
average revenue
total revenue divided by the quantity sold
43 terms
microeconomics chapter 14
perfect competition
average revenue
a firm will _____ if TC <VC
a firm will ____ if ATR<AVC
market with many buys and sellers selling identical products…
TR divided by Q
shut down
shut down
perfect competition
market with many buys and sellers selling identical products…
average revenue
TR divided by Q
23 terms
Microeconomics Chapter 14
oligopoly
oligopolist
imperfect competition
duopoly
an industry with only a small number of producers
a firm in such an industry
What an industry is characterized by when no one firm has a m…
An oligopoly consisting of only two firms
oligopoly
an industry with only a small number of producers
oligopolist
a firm in such an industry
18 terms
Microeconomics Chapter 14 Oligopoly
oligopoly
imperfect competition
collusion and cartel
noncooperative behavior
a type of market structure in which there are only a few prod…
when no one firm has a monopoly but producers none the less r…
when companies cooperate to raise their joint profits ... a cart…
when firms ignore the effects of their actions on other firms.
oligopoly
a type of market structure in which there are only a few prod…
imperfect competition
when no one firm has a monopoly but producers none the less r…
14 terms
Microeconomics- Chapter 14- Monopoly
Monopolist
Market Power
Monopoly Profits
Barrier To Entry
firm that is the only producer of a good
ability of a producer to raise prices
profits that a monopolist receives that those in a competitiv…
something that prevents other firms from entering the industry
Monopolist
firm that is the only producer of a good
Market Power
ability of a producer to raise prices
14 terms
Chapter 14 Microeconomics
a firm that is the only producer of a…
A firm is a perfect monopoly if it ...…
A firm has monopoly power if it ......
Barriers that exists that prevent othe…
monopoly
controls the entire market.
can manipulate the price.
-scarce resources ... -government intervention ... -economies of sc…
a firm that is the only producer of a…
monopoly
A firm is a perfect monopoly if it ...…
controls the entire market.
20 terms
Microeconomics Chapter 14
Lorenz Curve
Median Wage
Median Income
U.S. Official Poverty Line
A curve showing the percentage of total income received by a…
The middle wage when wages of all workers are ranked form low…
The middle income when all incomes are ranked from smallest t…
Benchmark level of income computed by the federal government…
Lorenz Curve
A curve showing the percentage of total income received by a…
Median Wage
The middle wage when wages of all workers are ranked form low…
23 terms
AP Microeconomics Chapter 14
Oligopoly
Oligopolist
Imperfect Competition
Duopoly
An industry with only a small number of producers.
A producer in an industry with only a small number of produce…
When firms compete, but also possess market power.
An oligopoly consisting of only two firms.
Oligopoly
An industry with only a small number of producers.
Oligopolist
A producer in an industry with only a small number of produce…
24 terms
microeconomics chapter 14
competitive market
total revenue
total revenue is proportional to
average revenue
there are many buyers and sellers, the goods offered are larg…
price X quantity
output
total revenue/ quantity sold
competitive market
there are many buyers and sellers, the goods offered are larg…
total revenue
price X quantity
13 terms
Microeconomics Chapter 14 Vocabulary
monopoly
natural monopoly
predatory pricing
economies of scale
a firm that is the only producer of a good or service with no…
a market in which a single firm can produce at a lower cost t…
temporarily slashing prices until rival local stores are forc…
as a firm produces more outputs its average costs go down
monopoly
a firm that is the only producer of a good or service with no…
natural monopoly
a market in which a single firm can produce at a lower cost t…
10 terms
Microeconomics Chapter 14 Terms
differentiated products
homogeneous products
oligopoly
monopolistic competition
refers to good that are similar but are not perfect substitutes
refers to goods that are identical and are perfect substitutes
the market structure that applies when there are few firms co…
the market structure that applies when there are many competi…
differentiated products
refers to good that are similar but are not perfect substitutes
homogeneous products
refers to goods that are identical and are perfect substitutes
15 terms
Microeconomics Chapter 14 Vocab
Barrier to Entry
Business Strategy
Cartel
Collusion
Anything that keeps new firms from entering an industry in wh…
Actions that a firm takes to achieve a goal, such as maximizi…
A group of firms that collude by agreeing to restrict output…
An agreement among firms to change the same price or otherwis…
Barrier to Entry
Anything that keeps new firms from entering an industry in wh…
Business Strategy
Actions that a firm takes to achieve a goal, such as maximizi…
43 terms
microeconomics chapter 14
perfect competition
average revenue
a firm will _____ if TC <VC
a firm will ____ if ATR<AVC
market with many buys and sellers selling identical products…
TR divided by Q
shut down
shut down
perfect competition
market with many buys and sellers selling identical products…
average revenue
TR divided by Q
45 terms
Microeconomics Chapter 14
How many characteristics of perfect co…
Characteristic #1 of perfect competition
Characteristic #2 of perfect competition
Characteristic #3 of perfect competition
4
many buyers and sellers
the goods offered for sale are largely the same
firms can freely enter or exit the market
How many characteristics of perfect co…
4
Characteristic #1 of perfect competition
many buyers and sellers
17 terms
Microeconomics Chapter 14
Private benefits and costs
Social benefits and costs
Free rider
Market failure
Benefits and costs to the decision maker, ignoring benefits a…
The sum of benefits to everyone in society, including both pr…
An individual who enjoys benefits without paying the costs
A situation in which market equilibrium results in too few or…
Private benefits and costs
Benefits and costs to the decision maker, ignoring benefits a…
Social benefits and costs
The sum of benefits to everyone in society, including both pr…
16 terms
Microeconomics Chapter 14
Laissez Faire
Peak Load Pricing
Price as signals
Market economy
refers to the practice of minimal government interference wit…
Allowing the price to rise during times of the day where ther…
when prices are allowed to rise, it serves as a signal to pro…
in a ______________ the price system determines what goods ar…
Laissez Faire
refers to the practice of minimal government interference wit…
Peak Load Pricing
Allowing the price to rise during times of the day where ther…
13 terms
Microeconomics Chapter 14
competitive market
average revenue
for all types of firms, average revenu…
marginal revenue
- many buyer and sellers... - goods offered are largely the same…
total revenue(PxQ)/quantity sold
...
the change in total revenue from the sale of each individual…
competitive market
- many buyer and sellers... - goods offered are largely the same…
average revenue
total revenue(PxQ)/quantity sold
15 terms
Microeconomics Chapter 14
oligopoly
barrier to entry
economies of scale
patent
a market structure in which a small number of interdependent…
anything that keeps new firms from entering an industry in wh…
the situation when a firms long-run average costs fall as the…
the exclusive right to a product for a period of 20 years fro…
oligopoly
a market structure in which a small number of interdependent…
barrier to entry
anything that keeps new firms from entering an industry in wh…
20 terms
Chapter 14 Review - Microeconomics
maximize its profit.
total revenue minus total cost.
is always decreasing.
do not require an outlay of money by t…
Economists normally assume that the goal of a firm is to
Profit is defined as
The average-fixed-cost curve
Implicit costs
maximize its profit.
Economists normally assume that the goal of a firm is to
total revenue minus total cost.
Profit is defined as
15 terms
Microeconomics Chapter 14
Competitive Market
Average Revenue
Marginal Revenue
Sunk Cost
A market with many buyers and sellers trading identical produ…
Total revenue divided by the quantity sold or the price of th…
The change in total revenue from an additional unit sold or,…
A cost that has already been committed and cannot be recovered.
Competitive Market
A market with many buyers and sellers trading identical produ…
Average Revenue
Total revenue divided by the quantity sold or the price of th…
18 terms
Chapter 14 Microeconomics
The primary goal of a business firm is…
A cost paid in money is
A normal profit is
The difference between a firms total r…
Maximize profit
an explicit and opportunity cost
part of a firms opportunity cost
Economic profit
The primary goal of a business firm is…
Maximize profit
A cost paid in money is
an explicit and opportunity cost
10 terms
Microeconomics Chapter 14
Monopoly
Monopolistic
Marginal Revenue (MR)
Marginal Cost (MC)
Is a market structure in which one firm makes up the entire m…
Firms marginal revenue is not its price. Firm's output decisi…
The change is total revenue associated with a change in quant…
The change in total cost associated with a change in quantity.
Monopoly
Is a market structure in which one firm makes up the entire m…
Monopolistic
Firms marginal revenue is not its price. Firm's output decisi…
20 terms
Microeconomics Chapter 14
4 market structures
3 key characteristics
perfectly competitive market
price taker
perfect competition, monopolistic competition, oligopoly, mon…
number of firms in the industry, similarity of goods produced…
many buyers and sellers, all firms sell identical products, n…
buyers and sellers must accept the price determined by the ma…
4 market structures
perfect competition, monopolistic competition, oligopoly, mon…
3 key characteristics
number of firms in the industry, similarity of goods produced…
13 terms
Microeconomics Vocab: Chapter 14
Oligopoly
Barriers to Entry
Ownership of a key input
Government Barriers
a market structure in which a small number of interdependent…
anything that keeps new firms from entering an industry in wh…
if control of a key input is held by a small number of firms,…
governments might grant exclusive rights to some industry to…
Oligopoly
a market structure in which a small number of interdependent…
Barriers to Entry
anything that keeps new firms from entering an industry in wh…
10 terms
Microeconomics Chapter 14 Vocab
production decision
efficiency decision
external cost
social costs
the selection of the short-run rate of output (with existing…
the choice of production process for any given rate of output
cost of a market activity borne by a third party; the differe…
the full resource costs of an economic activity, including ex…
production decision
the selection of the short-run rate of output (with existing…
efficiency decision
the choice of production process for any given rate of output
18 terms
Microeconomics Chapter 14
antitrust policies
regulatory policies
concentration ratios
Herfindahl Index
regulations established by laws and government agencies that…
administrative or legal attempts to influence the behavior of…
a measure of the degree to which the largest firms in an indu…
a measure of market concentration; calculated by squaring the…
antitrust policies
regulations established by laws and government agencies that…
regulatory policies
administrative or legal attempts to influence the behavior of…
23 terms
Microeconomics Chapter 14
oligopoly
oligopolist
imperfect competition
duopoly
industry with few sellers
firm in oligopoly
situation in which firms compete but also possess market power
industry with two producing firms
oligopoly
industry with few sellers
oligopolist
firm in oligopoly
30 terms
Microeconomics Chapter 14
Market power
Competitive market
Goal of a competitive firm
Total revenue
The ability to influence market price
Market with many buyers and sellers... Identical products... Each b…
Maximize profit
Price x Quantity (proportional to amount of output)
Market power
The ability to influence market price
Competitive market
Market with many buyers and sellers... Identical products... Each b…
12 terms
Microeconomics Chapter 14
Oligopoly
Barrier to Entry
Economies of Scale
Patent
A market structure in which a small number of interdependent…
Anything that keeps new firms from entering an industry in wh…
The situation when a firm's long-run average costs fall as th…
The exclusive right to a product for a period of 20 years fro…
Oligopoly
A market structure in which a small number of interdependent…
Barrier to Entry
Anything that keeps new firms from entering an industry in wh…
16 terms
Chapter 14 Microeconomics
Oligopoly
imperfect competition
collusion
cartel
is an industry with only a small number of producers
When no one firm has a monopoly, but producers nonetheless re…
when they cooperate to raise their joint profits
is an agreement among several producers to obey output restri…
Oligopoly
is an industry with only a small number of producers
imperfect competition
When no one firm has a monopoly, but producers nonetheless re…
13 terms
Microeconomics Chapter 14
Monopoly
market power
Causes of Monopoly
Constraint of a monopolist
market with only one seller, they set the price. polar opposi…
ability to influence price
-barriers to enter... -government intervention... -agressive tactic…
market demand curve
Monopoly
market with only one seller, they set the price. polar opposi…
market power
ability to influence price
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