Short-run
Long-run
Profit
Perefect Competition
Random
100
Define the short-run
The short-run is a period in which at least one resource is fixed
100
Define the long-run
•In the long-run ALL resources are variable
100
Define "revenue"
Money that is earned
100
Name the three imperfect market structures
Monopoly
Monopolistic competition
Ologopoly
100
What's my last name? (spelled correctly)
Vickers
200
What are fixed costs?
Costs for fixed resources that DON’T change with the amount produced
200
When exactly is “the long run”?
Not set time but it's no longer the short run when all costs can be variable
200
What's the difference betwween accounting profit and economic profit?
Economic profit has explicit costs
200
What are barriers to entry?
Things that stop companies etering a market
200
What has three hands, a face, and no body?
A clock
300
Why does marginal cost always go down then up?
The additional costs (MC) of the units they produce fall when MP goes up, but eventually increase as additional workers produce less and less output
300
What happens to the average total costs of a product when a firm increases its plant capacity?
It goes up
300
What is the term used for no economic profit?
Normal profit
300
Nme 3 characteristics of perfect competition
•Many small firms
• Identical products (perfect substitutes)
• Low Barriers- Easy for firms to enter and exit the industry
• Seller has no need to advertise
• Firms are “Price Takers”
300
In which European city would you find Orly airport?
Paris
400
Why does ATC go down then up?
•When the marginal cost is below the average, it pulls the average down.
•When the marginal cost is above the average, it pulls the average up.
400
Draw a graph that shows economies, constant, and diseconomies of scal
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400
What is the goal of every firm?
To maximize profit
400
When do firms shut down in the short-run?
When D=MR=P=AR is below AVC
400
What is the name of the toy cowboy in Toy Story?
Woody
500
Where does MC intersect with ATC?
MC intersects the ATC curve at ATC’s lowest point
500
Why do economies of scale occur?
•Firms that produce more can better use Mass Production Techniques and Specialization.
500
What is the profit maximizing rule?
MC=MR
500
What represents the short run supply curve on the perefect competion graph?
The MR curve above ATC
500
Whose nose grew longer every time he lied?
Pinocchio