Markets
An institution that brings together buyers ("demanders") and sellers ("suppliers") of particular goods, services, or resources.
What is a market?
A schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time.
What is demand?
The easiest market structure to enter and exit. It has lots of small firms.
What is perfect competition?
When firms charge different prices to different customers for the same good or service.
What is the price discrimination?
Unerproduction and underallocation of resources result when these are present.
What are spillover benefits or positive externalities?
The demand for Jumbo Shrimp baseball jerseys increased after they won the AAA championship because of.
What are tastes & preferences?
Fast food restaurants and barbershops compete in this industy
What is monopolistic competition?
A payment from the government.
What is a subsidy?
Goods that are non-excludable and non-rival.
What are public goods?
Another word for consumers.
What are buyers?
Tastes & Preferences, income, number of buyers, price of related goods, and consumer expectations.
What are the shifters determinants of demand?
Another word for advertising and branding
What is non-price competition?
Rent control is an example of this.
What is price ceiling?
A person who benefits from something without paying for it.
What is a free-rider?
A condition that exist when prices are above the equilibrium price.
What is a surplus?
Goods that used in placed of one another such as coffee and tea.
What are substitutes?
When firms try to restrict output to raise the price.
What is collusion?
The amount of money a firm earns. Found by multiplying price times quantity.
What is total revenue
The idea that government is not needed to remedy spillover costs or benefits where property ownership is clearly defined, the number of people involved is small, and bargaining costs are negligable.
What is Coase theorem?
Graphically, the intersection of the supply curve and the demand curve for a product indicates this.
What is the market equlibrium?
This exists when the demand for a good or service exceeds the supply of the good or service.
What is a shortage?
What market structure does the domestic airlines and breakfast cereal producers compete in?
What is oligopoly?
Another word for a consumption tax.
What is an excise tax?
The problem associated with common resource goods such as the air, fish in a pond or rhinos in Africa.
What is the Tragedy of the Commons?