Vocab
Formulas
Cause & Effect
On a Graph
Micro Misc.
100
The change in output produced by employing one additional unit of the variable input (i.e., labor)
What is Marginal Physical Product (MPP)?
100
Total Fixed + Total Variable costs
What is Total Cost?
100
The inflection point of the production function equates to the minimum Marginal Cost, when THIS sets in
What is diminishing marginal returns?
100
Economic profit: positive, negative, or zero?
What is positive economic profit?
100
P=MC, or S=D
What is Allocative Efficiency?
200
The overall output generated with a given level of inputs
What is the Production Function (Total Product)?
200
(%ΔQs) / (%ΔP)
What is Price Elasticity of Supply?
200
Perfectly competitive firms earning positive economic profit causes THIS in the long run.
What is an increase in market supply and zero economic profit (Long-run equilibrium)?
200
This sets in after L1 units of labor
What is diminishing marginal returns?
200
Type of efficiency shown by Q=ATCmin
What is productive efficiency?
300
Firms in perfect competition have no price-setting power and so are called this
What is a price taker?
300
ΔTC/ΔQ
What is Marginal Cost (MC)?
300
Output where a firm makes a normal profit (total cost is equal to total revenue)
Break Even Point
300
The shaded area when the market produces QL units of output
What is deadweight loss?
300
What are at least two characteristics of perfect competition?
Large number of buyers and sellers
Homogeneous (identical) products
No barriers to entry and exit
Price takers
400
This type of subsidy is given for every output produced, thus increasing output for each firm
What is a per-unit subsidy?
400
The profit-maximizing rule
What is MR=MC?
400
A binding price ceiling leads to THIS market result
What is a shortage?
400
The profit-maximizing quantity at price P3
What is Q3?
400
THIS factor is left out by accountants but included by economists when determining profit
What is implicit cost?
500
This type of subsidy is given to each firm regardless of the output level produced, thus not affecting output for each firm
What is a lump-sum subsidy?
500
Cross-Price Elasticity of Demand
(%ΔQd Good X) / (%ΔP Good Y)
500
This MR=D=AR=P change results from some firms leaving the market when experiencing economic losses
What is an increase (MR=D=AR=P rises)?
500
The firm's supply curve
What is MC from ATCmin up (MC from Q0 and up)?
500
3520 Esteva Place
What is the address of Wiley Manor?