Good to know
The satisfaction receive from consumption
What is 'Utility'?
Total Profit - Normal Profit
What is supernormal profit?
Following a price decrease of an inferior good, less of the product is consumed
what is the "income effect"?
This law states that "as consumption increases, the satisfaction from consumption decreases".
What is the law of diminishing marginal utility?
A type of good for the income effect is opposite and larger than the substitution effect
What is a Giffen good?
Many Firms, Differentiated products, Low Barriers to entry, and Limited control over price are characteristics of ............
What is Monopolistic Competition?
MUa/Pa = MUb/Pb.....
What is the "equi-marginal utility principle"?
Identification, Assign Monetary Values, Forecast future values, and Decision-making are all involved in the process of ...............
What is "cost-benefit analysis"?
If text messages (短信）mention the direct costs to the National Hospital Service for missing an appointment is (£160) less people might miss appointments
What is the "Nudge Theory"?
Where price is equal to marginal cost
What is allocative efficiency?
Suzie owns a bakery which generates ¥150,000/yr. Her fixed and variable costs are ¥30,000 and ¥110,000.
Is she making a profit?
What is "Maybe"?
Are we talking about accounting profit or economic profit?
MPC - MEB = ?
What is "Marginal Social Cost"?
The temptation to take risks when another party is covering these risks
What is "Moral Hazard"?
If PED is greater than 1, Marginal Revenue must be less than 0.
What is false?
price leadership, price rigidity, and interdependence can be used to describe ............
What is Oligopoly?
Monopolies aren't all bad, those supernormal profits might lead to _________________.
What is dynamic efficiency?
why do patents protect unique products like medicine?
(the change in Total Revenue/ the change in Quantity)
What is "marginal revenue"?
After reaching a certain wage level, individuals will prefer leisure instead of working
What is the income effect?
For example, adding an additional chef to the kitchen causes more accidents and lower marginal output of meals.
What is the law of diminishing returns?
Volkswagen bought Audi in 1965, then bought Lamborghini in 1998, and then bought Porsche in 2009.
What is horizontal integration?
A firm increases its labour, capital, land, and enterprise by 100%. As a result, it's output increases by 125%
What is "increasing returns to scale"?
What is the 'four-firm concentration ratio'?
This occurs when factor inputs increase at a proportionately faster rate than the increase in output. For example, doubling the size of a farm results in an 80% increase in output.
What are decreasing returns to scale?
Pollution permits, property rights, and quotas are all solutions for ________
What are negative production externalities?
"_________ pricing" seeks to eliminate current competitors while "____________ pricing" seeks to stop new competitors from entering the market.
What are predatory and limit pricing?