Market Structures
A market structure in which only one seller dominates the entire market.
What is a Monopoly?
This is all the human work that goes into production.
What is Labor?
This is the result of adding Fixed Costs plus Variable Costs.
What is Total Cost?
This is a condition when a country gets richer and more productive with time.
What is Economic Growth?
These are 2 of the sectors in the Circular Flow Model.
What are...Households, Businesses, Government, International Sector, Financial Sector?
A market structure in which sellers can enter and exit freely, sellers sell identical goods, and sellers have no market power.
What is Pure/Perfect Competition?
If an investor spends money on their business, they spend their money from this.
What are Savings?
This is the money value of inputs that can change with production level.
What are Variable Costs?
This is all the skill, knowledge, experience, and abilities that people bring to the market.
What is Human Capital?
Resources flow from this sector.
What are Households?
When companies unite anticompetitively to determine prices on their own.
What is Collusion?
In a business that makes baseball bats, this is the Land.
What is wood?
This is the effect that as a variable input increases, the smaller marginal product eventually decreases.
What is the Law of Diminishing Marginal Productivity?
This is the creation of new goods or services, or an improvement to an old good or service.
What is Innovation?
These are the 2 things that flow FROM Business TO Households.
What are Wages and Products/Services?
People who must sell at the going rate and have no market power.
What are Price Takers?
These are the 4 factors of production.
What are Land, Labor, Capital, and Entrepreneurship?
The profit-maximizing output is found at this level.
What is...when Marginal Revenue equals Marginal Cost?
These are the costs that are needed in order to achieve long-term growth.
What are Short-Term Trade-Offs?
These are the 2 interactions the Financial Sector has with the Circular Flow Model.
These are 3 of the traits of an Oligopoly.
What are...
-Few Sellers
-Similar Products
-Market Power
-Price Competition
-Difficult entry and exit
The process of exchanging money for investment in machinery, equipment, and backstock.
What is Capital Formation?
This is what a business owner should do when the Marginal Cost is at its lowest point and the Marginal Revenue is larger than the Marginal Cost.
What is Increase Production?
These are the 5 of the 7 factors that lead to healthy economic growth.
What are Resources, Human Capital, Physical Capital, Infrastructure, Institutions, Innovation, and Incentives?
These are the 4 types of flow in the Circular Flow Model.