A good is excludable if the supplier of that good can prevent people who do not pay from consuming it.
100
What is the difference between implicit and explicit costs?
Explicit costs are input costs that require an outlay of money by the firm and implicit costs are input costs that do not require an outlay of money by the firm.
100
What are antitrust laws?
They regulate and prohibit certain kinds of market behavior, such as monopoly and monopolistic practices.
200
If technology advances, what will happen to firms that stick with the old technology?
They will incur economic losses.
200
What does it mean if the price elasticity of supply equals 1?
Supply is unit elastic.
200
What goods are nonexcludable and nonrival?
Public goods.
200
Is accounting profit or economic profit larger?
Accounting profit is larger because it is total profit minus explicit costs, not all costs.
200
What is the biggest difference between monopoly and competition?
Single price monopolies produce a smaller output and charge a higher price.
300
What is the shutdown point for perfectly competitive firms?
The output and price at which price equals the minimum average variable cost.
300
What are some factors that influence the ability to find a substitute for a good?
Whether it's a necessity or a luxury, how narrowly it is defined, and the amount of time available to find a substitute for it.
300
What kind of monopoly would fire protection in a small town be?
Natural monopoly; excludable but not rival.
300
The production function is the relationship between?
Quantity of inputs used to make a good and the quantity of output of that good.
300
What is the entry like in monopolistic competition?
There is no restriction on entry.
400
For a perfectly competitive corn grower in Nebraska, the marginal revenue curve is...?
The same as the demand curve.
400
What formula is used to find the price elasticity of demand between two points?