A market in which there are any buyers and sellers so that each has a negligible impact on the market price.
What is a competitive market?
100
The least cost production of the particular mix of goods and services most wanted by society.
What is allocative efficiency?
100
These are goods that rival in consumption but not are not excludable.
What are common resources?
100
A market structure in which only a few sellers offer similar or identical products
What is an oligopoly?
100
Perfectly competitive firms are considered to be this when it comes to prices.
What are price takers?
200
The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
What is consumer surplus?
200
A curve that plots the various maximum output combinations of a two product society.
What is a production possibilities curve?
200
The uncompensated impact of one person's actions on the well-being of a bystander. It may be positive or negative.
What is an externality?
200
A firm that is the sole seller of a product without close substitutes.
What is a monopoly?
200
The demand curve for perfectly competitive industries is equal to these.
What is MR, AR, P?
300
The claim that the price of any good adjusts to bring the quantity supplied and quantity demanded for that good into balance
What is deadweight loss?
300
A legal maximum on the price at which a good can be sold.
What is a price ceiling?
300
A person who receives the benefit of a good but avoids paying for it.
What is a free rider?
300
A strategy that is best for a player in a game regardless of the strategies chosen by the other players. Often seen in oligopoly decision making.
What is a dominant strategy?
300
The marginal revenue product equals this in perfect competition.
What is product price x marginal product?
400
A measure of how much a quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price.
What is price elasticity of demand?
400
This is the profit maximization rule for all markets.
What is MR = MC?
400
Rational individuals compare these two things when making an economic choice.
What are marginal costs and marginal benefits?
400
The business practice of selling the same good at different prices to different consumers, most commonly by monopolies.
What is price discrimination?
400
Perfectly competitive markets are considered to have low this - referring to the ability to firms to start and stop producing in the market.
What are barriers to entry?
500
A market in which there is a single buyer.
What is monopsony?
500
The property whereby the marginal product of an input declines as the quantity of the input increases.
What is diminishing marginal product?
500
This is the criteria for a producing at allocative efficiency.
What is MC = MB = P?
500
A monopolistically competitive firm makes this type of profit in the long run.
What is a normal?
500
Perfectly competitive industries should shut down when this condition is true.