EC-907
This market type is characterized by a single seller and high barriers to entry
What is a monopoly?
The fundamental problem in economics where unlimited wants meet limited resources.
what is scarcity?
The total market value of all final goods and services produced within a country in a year.
what is gross domestic product?
To be counted in this group, a person must be jobless, looking for work, and available to work.
who are the unemployed?
This term refers to a market where only a few large firms dominate, like the wireless carrier industry.
what is an oligopoly?
The paradox where two firms compete on price until it reaches marginal cost, resulting in zero profit
what is Bertrand competition?
If the elasticity of demand is greater than 1, the demand is considered to be this
what is elastic?
This type of GDP is adjusted for inflation, whereas Nominal GDP is not
what is real GPD?
The "average" calculated by summing all observations and dividing by the number of observations.
what is the mean?
A firm has "market power" if it has the ability to do this to its prices without losing all its customers.
what is raise them?
This strategy involves a firm setting a low price to drive competitors out of the market.
what is predatory pricing?
This type of good has a vertical demand curve because quantity demanded doesn't change regardless of price.
what is perfectly inelastic?
The four components of GDP are Consumption, Investment, Government Spending, and this.
what are net exports
The middle value in a data set when the numbers are arranged in order
what is the median?
The profit-maximizing rule for any firm is to produce where Marginal Revenue equals this
what is marginal cost?
In this model, firms compete on the quantity of output produced rather than price.
what is cournot competition?
Goods that are often bought together, like peanut butter and jelly, have this type of cross-price elasticity.
what is negative?
This index measures the average change over time in the prices paid by urban consumers for a market basket of goods.
what is the consumer price index?
A measure of how spread out the data is; it is the square root of the variance.
what is standard deviation?
This happens when a firm sells the same product at different prices to different people (e.g., student discounts)
what is price discrimination?
This term describes a firm’s ability to raise price above marginal cost without losing all customers.
what is market power?
Total revenue is maximized when price elasticity of demand is exactly this value
what is unit elastic?
the formula for this is: nominal GPD/ real GPD x 100
what is the GDP Deflator?
For a standard normal distribution (Z), this is the value of the mean and the standard deviation
what are 0 and 1?
A strategy where a firm keeps prices artificially low just to prevent new rivals from joining.
what is limit pricing?