Point where the Demand Curve and the Supply Curve meet. At this point quantity demanded equals quantity supplied
What is Equilibrium
100
MC=MR, D, AR, P
What is profit-maximization
100
Principle behind the actions of the firms in an ologopoly
What is interpendence
100
additional amount of utility gained from an extra unit of consumption
What is marginal utility
100
unlimited wants and limited resorces
What is scarcity
200
quantity demanded is greater than quantity supplied
What is a shortage
200
horizontal demand curve
What is price-taker
200
course of action a firm decides to take regardless of the decision made by another firm
What is a dominant strategy
200
Total satisfaction received from consumption
What is total utility
200
As a result of scarcity society has to choose from many alternatives
What is trade-off
(What is choice)
300
Difference between willingness of consumers to pay and what they actually pay
What is consumer surplus
300
price is below average total cost
What is negative economic profit
300
Best course of action for two firms with perfect knowledge
What is nash equilibrium
300
utility decreases with consumption of additional unti
What is decreasing marginal utility
300
One party has a lower opportunity cost in the production of a good than a second party
What is a comparative advantage
400
Taste, income, expectations, technology, and the price of related goods
What is factors that affect the demand curve
400
price is greater than average total cost
What is positive economic profit
400
Famous example which expresses the principles of an oligopoly
What is the Prisoner's Dilemma
400
the amount of money consumer can use to buy two products
What is the budget line
400
opportunity cost in relation to related goods on a production possibilities curve
What is constant opportunity cost
500
Government intervention that reduces equilibrium quantity and shifts supply curve to the left. The price for consumers increases and some of that money goes to the government while the rest goes to the supplier
What is an excise tax
500
P=ATC
What is normal profit
500
potentially differentiate a product
What is advertising
500
the ideal amount of two goods in order to maximize utility
What is optimal consumption bundle
500
cause of increasing opportunity cost on the production possibilities curve