Chatty Cheetah
These are the 4 market structures.
What are Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly?
This determines everything in the productivity model.
What is LDMR (Law of Diminishing Marginal Returns)?
This is the equation for a firm's total costs (TC).
What is TC= TFC + TVC?
True or False. Investors will leave if positive economic profit continues over time.
False. (negative...not positive)
What is the Shut Down rule?
This is the Production function.
Output= F (Labor, Capital)
This happens to TP when the MP is greater than 0.
TP is increased.
True or False. Marginal Costs is the additional costs of producing an additional unit of input.
False...and additional unit of Output (not input).
True or False. Positive economic profit will attract investors.
True.
True or False. Rule #2 is true for all market structures.
True.
These are the 3 factors of production.
What are land, labor and capital?
This happens to TP when MP is less than 0.
TP is decreased.
This is the formula for Marginal Cost (MC).
What is Change in TC/ Change in Output?
This is the difference between accounting profit and economic profit.
Accounting profit excludes opportunity cost of capital. Economic profit includes opportunity cost of capital.
Utility company, post office, and telephone and cable companies are examples of this.
What is a monopoly?
Change TP/ Change Q is the formula for this.
What is MP (Marginal Product)?
These are the two categories of costs a firm has.
This determines the shape of the long-run average cost curve.
What is economies of scale?
This is the definition of price taker.
What is a 2.5?
This law states that as variable inputs increase given some fixed input, at some point the extra total output (MP) will begin to decline.
What is the Law of Diminishing Marginal Returns (LDMR)?
This can be derived from the TVC, TFC and TC curves.
What are the MC, the ATC, and AVC curves?
These are the 3 sections to a cost curve.
What are economies of scale, minimum efficient scale, diseconomies of scale?
This is the definition of price maker.
When the firm can choose what price and quantity to sell at.
What is the GPA needed to graduate ASU?
What is a 2.0?