Better Living Through Marginals
Costs of Production (C9)
Double OTS - (No Notes)
Market Models (The Rest)
Mind Games with Money
400
Economists, and now you, use this term to describe the extra satisfaction a person gains from consuming one additional unit of a good.
What is marginal utility?
400
When a firm's total cost is divided by the number of units it produces.
What is Average Total Cost?
400
Draw the Demand, Supply and Marginal Revenue curves for a Pure Monopolist.
400
It sounds like everyday “competition,” but in economics it’s the rare market where countless sellers offer identical products and none can influence price.
What is Pure Competition?
400
Term for the situation where neither player in a non-cooperative game can improve their outcome by changing their strategy, given the strategy of the other player.
What is Nash equilibrium?
800
When a shopper spreads their spending so the marginal utility per dollar is the same across all goods, you would say the consumer is maximizing this.
What is total utility?
800
One version is the kind of cost that hits your bank account, the other is the one you “feel” but never see. Economists need both to calculate a firm’s true burden.
What are Implicit and Explicit costs?
800
Go draw, TC, TFC, TVC
Which one increases when the firm increases its output and decreases when the firm reduces its output
800
The name suggests “a few,” and that’s accurate, but in economics it refers to a tight group of firms whose decisions are so linked that one move can trigger a chain reaction.
What is an oligopoly?
800
Don't forget I sent you an Article from the New York Times on OPEC as one of your essay questions worth the most points will reference this article. But back to OPEC: This group is similar to an oligopoly, but this key action results in a Cartel.
What is Collusion?
1200
If a consumer reallocates spending to get more marginal utility per dollar from good B than good A, this will happen to total utility.
What is it increases?
1200
This profit measure adjusts total revenue for both explicit cash expenditures and the opportunity costs of the owner's resources, providing a deeper assessment of whether a firm is actually creating value beyond its next best alternative. (Hint - Janet)
What is Economic Profit. (Yell'in Yellen)
1200
In a perfectly competitive world where every firm is too small to nudge the price, sketch the market supply and demand curves, then zoom in to draw the firm’s graph featuring the famously flat MR.DARP line along with its ATC and MC curves.
1200
This term may sound like a basic average, but for a perfectly competitive firm in the short run, price must at least cover it to justify staying open.
What is average variable cost?
1200
In a sequential game, the firm that moves first can sometimes secure this advantage by acting before its rivals.
What is first-mover advantage?
1600
This foundational idea shows why a scarce luxury good commands a higher price than an abundant life sustaining one, because buyers pay based on marginal utility rather than total usefulness.
What is the diamond water paradox?
1600
On TV this abbreviation represents a glamorous zip code, but in economics it represents the value of whatever you gave up to choose your current action.
What is Opportunity Cost?
1600
For a Mono Comp Firm, draw the graph including (MR, MC, D, ATC) for this situation:
1600
On a graph it’s just two lines crossing, but for a monopoly it marks the exact point where profit is maximized.
What is MR = MC
1600
In this game theory experiment, two rational agents can either cooperate for mutual benefit or betray their partner for individual gain.
What is the Prisoners' Dilemma?
2000
This tech giant pushed its market power right up to the edge without crossing into an official monopoly, a distinction your final exam will expect you to explain.
What is Meta?
2000
It sounds like something “ordinary,” but in economics it represents the exact point where a firm earns zero economic profit yet still has every incentive to stay in its industry.
What is Normal Profit?
2000
What is worth 1% of your entire Grade?
(Bring it down to the podium so you don't forget it on the 15th)
2000
It’s the simplest number you can say, but in a perfectly competitive long run it represents the economic profit firms are driven toward by free entry and exit.
What is zero?
2000
OTS: Go to the all same board on the right, and write the word or words that describe this course and our time together. I'd like to make a word cloud for day one next semester on your thoughts to kick off the new semester. (I brought lots of markers and colors!)