Supply and Demand/PPFs
Being on the line in a PPF
What is full employment of resources or no waste?
Price elasticity < 1
What is inelastic?
Maximum amount someone is willing and prepared to pay for something
What is willingness to pay?
No competition with no similar products
What is monopoly?
Determines a long rule
What is all inputs are varied?
A shift along the demand curve
What is change in quantity demand?
(% change Qty Demand) / (% change Price)
What is the equation for elasticity?
Willingness to pay - actual price
What is consumer surplus?
Price taking firms (horizontal demand curve)
What is many firms, identical product, perfect competition?
Both of these types of business have unlimited liability
What is sole proprietorship and partnership?
Price of product, price of related goods (substitutes and compliments), income, expectations, tastes and number of buyers
What is determinants of quantity demanded?
More substitutes means...
Opportunity costs of resources owned by firm
What is implicit cost?
Government created, due to legal restrictions, licence, or claim of right to supply
What is reason for a monopoly or legal monopoly?
Law of scarcity
What is not all wants of society can be satisfied?
Government controlled price, maximum or minimum?
What is price floor or ceiling?
Measures how sensitive quantity demand is to price changes of something else
What is cross price elasticity of demand?
Change in total cost / change in quantity
What is marginal cost?
Price is greater than marginal cost
What is monopoly output?
Economic profits are negative
What is shut down rule?
A reason for a PPF to shift the curve out
What is better technology?
positive cross price elasticity
What is a substitute?
Double all inputs, more than double outputs
What is economies to scale?
Collusion among suppliers to act like one firm and raise prices
What is monopoly postscript?
What is the name of our economics professor?