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Another term for efficiency losses occurring when quantity levels are less than or greater than the efficient quantity.
What are deadweight losses?
The demand for any resource is derived from this.
What is the product demand it helps produce?
The case where price elasticity of demand is 1.
What is unit-elastic?
The principle of comparative advantage says that total world output is greatest when each good is produced by the nation with the lowest of these.
What is opportunity costs?
The demand curve of an individual, purely competitive firm can be described as this.
What is perfectly elastic?
The difference between the maximum prices are willing to pay and the lower equilibrium price.
What is consumer surplus?
In a purely competitive labor market, the supply of labor faced by an individual firm can be described as:
What is perfectly elastic?
The impact on total revenue when demand is elastic and price is decreased.
What is total revenue increases?
A government payment to a domestic producer of export goods designed to reduce the firm's production costs.
What is an export subsidy?
Short-run profit maximization for a purely competitive firm is achieved when this condition is met.
What is MR=MC?
When a product is produced at the lowest achievable per-unit cost.
What is productive efficiency?
The rule guiding a profit maximizing firm for employing resources.
What is MRP=MRC?
A negative income-elasticity describes this type of good.
What are inferior goods?
This increases when a domestic product market opens to international trade and the world price is lower than the domestic equilibrium price.
What is consumer surplus?
Like a purely competitive firm, this type of firm earns only normal profits in the long run.
What is a monopolistic competitive firm?
The difference between the actual price a producer receives and the minimum acceptable price the consumer would have to pay.
What is the producer surplus?
This type of firm is a "wage maker".
What is a monopsony?
Substitutability, proportion of income and time are all determinants of this.
What is price elasticity of demand?
Describes the exchange ratio between two countries.
What are the terms of trade?
The price level where a regulated monopoly can efficiently allocate resources.
What is the socially optimal price?
Long-run equilibrium for a pure competition firm guarantees this condition since P=MC.
What is allocative efficiency?
The responsiveness of producers to a change in the resource's price.
What is the elasticity of resource demand?
When cross elasticity of demand between two goods is negative, they can be described as this.
What are complementary goods?
When a country imposes a tariff, this rises.
What is producer surplus?
The point where a pure monopolist's total revenue is maximized.
What is when MR = 0?