13- Monopolistic Competition
No Collusion
What is monopolistic competition.
a few firms producing either a differentiated or a homogeneous product.
What is a oligopoly.
Additional output resulting from each additional unit of labor.
What is resource pricing.
The price paid for the use of land and other nonreproducible resources.
What is economic rent or pure rent.
Dividing a group into fifths
What are quintitles.
Expressed as a % and the ratio of the 4 largest firms
Four firm concentration ratio
Cooperation with rivals
What is collusion.
The amount an additional worker adds to the firm's total output.
What is Marginal Product.
Is the marginal revenue created by using one additional unit of resource.
What is Marginal Revenue Product.
Relation to the amount of money necessary to meet basic needs such as food, clothing, and shelter.
What is poverty?
advertising, product promotion, and changes in the real or perceived characteristics of a product.
What is nonprice competition
analyzes how people behave in strategic situations, study the payoff matrix and prisoners dilemma.
What is game theory.
The increase in total resource cost associated with the hire of one more unit of the resource.
What is marginal resource cost.
Indicates that price increases bring forth more of that resource.
What is the incentive function of prices.
High income nations.
What are industrially advanced countries (IAC's)
gives much greater weight to larger firms than to smaller firms in an industry.
The Herfindahl index
When a larger firm can produce at a lower cost due to being larger. cost of materials, scale of production etc.
What are economies of scale.
A real wage is the quantity of goods and services a worker can obtain with nominal wages or the “purchasing power” of nominal wages.
What are real wages.
Entry fees at national parks and monuments are an example of
What is the benefits received principle of taxation.
is a summary measure of income inequality derived from the Lorenz curve.
What is the Gini Coefficient Ratio.
percentage of total industry sales accounted for by the largest firms in the industry.
What is a Concentration ratio.
An outcome of a strategic game from which neither rival wants to deviate.
What is Nash equilibrium.
Single buyer for a particular type of labor
What is a monoposy.
Total income less deductions and exemptions.
What is Taxable Income.
low rates of economic growth and relatively high rates of population growth.
What are DVC's (developing countries)