Unit 2
What shape is the demand curve?
Downward sloping
What does a bowed out PPC mean?
Increasing opportunity cost
Where is profit maximizing point?
MR=MC
Where do monopolies produce?
MR=MC up to D
How many super bowls do the Pittsburgh Steelers have?
6
Where is equilibrium?
MR=MC
what does it mean to have the comparative advantage?
A lower opportunity cost
What shape is the MC curve?
Nike swoosh
What is a dominant strategy?
When one firm makes a decision regardless of the other firms choice
What shade of color is Orchid?
Purple
Where is consumer surplus located on a graph?
Above price, below demand
How do you know if two countries will trade at a specific price?
The price is between their opportunity costs
How do you calculate total cost?
Variable Cost+Fixed Cost
What is the major difference in Oligopolies compared to other markets?
Interdependency
Which state is nicknamed the "Buckeye" state?
Ohio
What do you call it when elasticity is <1
Relatively Inelastic
What is the difference between market and command economy?
Command: Government makes the choices
Market: Consumers and producers make the decisions
What shape is long run ATC?
A big U
What market structure results in zero producer surplus?
Perfect-Price discrimination
What is India's most popular sport?
Cricket
What type of good has a negative cross price elasticity of demand?
Inferior goods
What is economics the study of?
Scarcity and choice
What is normal profit?
0 economic profit
What are two ways firms get away with price discrimination?
Advanced purchase restrictions and volume discounts
What is the fastest member of the animal kingdom?
Peregrine Falcon