NAME THAT GOOD
Ice Cream Cones, Tacos, Clothing
What are Private Goods?
or
PRICE x QUANTITY
What is TOTAL REVENUE?
What is a Perfectly Competitive Market?
Rent, Vehicles, Machinery.
What are Fixed Costs?
High-income taxpayers pay a larger fraction of their income. (CHAP 12)
What is a PROGRESSIVE TAX SYSTEM?
National Public Radio (NPR), Air, Basic Research
What are Public Goods
Total Revenue MINUS Total Cost
What is PROFIT?
The change in total revenue from an additional unit sold.
What is MARGINAL REVENUE?
Raw Materials, Hourly Labor, delivery costs
What are Variable Costs?
The property by whereby the marginal product of an input declines as the quantity of the input decreases. (CHAP 13)
What is Marginal Product?
Netflix, Adobe Photoshop,
What are Club Goods?
Total Revenue minus Total Cost, including both explicit and implicit costs.
What is ECONOMIC PROFIT?
MR=MC
What is the quantity that the Competitive Firm will produce?
A nonrefundable concert ticket.
What are Sunk Costs?
A person who receives the benefit of a good but avoids paying for it. (CHAP 11)
What is a FREE RIDER?
Clean Air, a Busy Public Park,
What are Common Resources?
The quantity of output that minimizes average total cost.
What is EFFICIENT SCALE
Competitive firms make ________ profit in the long run. (2 WORDS)
What is ZERO ECONOMIC PROFIT?
Forgone interest on your money, wages you could have earned in a different job
What are Implicit Costs?
The property whereby long-run average total cost falls as the quantity of output increases. (CHAP 13)
What is ECONOMIES OF SCALE?
The Beach
What is a PUBLIC GOOD???
or
What is a COMMON RESOURCE???
The increase in total cost that arises from an extra unit of production.
Firms will exit the market in the long run if Price is less __________
What is ATC (AVERAGE TOTAL COST)?
Rent, interest payments, wages, raw materials
What are EXPLICIT COSTS?
The idea that people should pay taxes based on the benefits they receive from government services. (CHAP 12)
What is the BENEFITS PRINCIPLE?