Supply & Demand
A rise in the price of a good causes this on the demand curve.
a movement along the demand curve
Demand with elasticity greater than 1 is called this.
Elastic
This is extra output from one more unit of input.
marginal product
A perfectly competitive firm is a ___ taker.
Price
Trade is based on this type of advantage.
comparative
If income rises and demand for a good rises, that good is this type.
normal good
If demand is inelastic and price rises, total revenue usually does this
Total cost equals these two things added together.
Fixed and Variable Costs
A competitive firm maximizes profit where price equals this
P=MC
If world price is above domestic price, the country will usually do this.
Export
If market price is above equilibrium price, this occurs.
Surplus
The side of the market that bears more of a tax is the side that is this.
Less Elastic
This cost is found by dividing total cost by quantity.
average total cost
A monopolist chooses output where these two are equal
MC=MR
Pollution is this kind of externality.
Negative
If the price of hot dogs rises and demand for buns falls, buns and hot dogs are these.
Complements
A legal maximum price is called this.
Price ceiling
This law says marginal product eventually falls as more variable input is added to a fixed input.
law of diminishing returns
After finding the monopoly profit-maximizing quantity, price is found from this curve.
Demand Curve
Firms in oligopoly often study strategic behavior using this field
Game Theory
Name two non-price factors that can shift demand.
income, tastes, expectations, number of buyers, or prices of related goods
A tax reduces quantity traded and creates this loss of total surplus.
Deadweight loss
Economic profit equals total revenue minus these two types of costs
This market structure has many firms, differentiated products, and zero economic profit in the long run.
Monopolistic competition
In labor markets, firms hire workers until wage equals this.
Value of the marginal product of labor