Economic Decision Making
This is the fundamental economic problem that arises from unlimited wants and limited resources?
What is Scarcity?
This is a process used to weigh the total expected costs of a project against its total expected benefits.
What is cost-benefit analysis?
This market structure is characterized by many sellers offering a variety of similar products, often relying on branding and advertising to stand out.
What is monopolistic competition?
The willingness and ability of sellers to produce and offer a certain amount of a good or service at a given price.
What is supply?
This economic concept measures how sensitive the quantity demanded or supplied is to a change in price.
What is price elasticity?
This term describes the amount of a good or service consumers are willing and able to buy at a specific price?
What is Demand
The change in cost and the change in benefit from one additional unit of an activity.
What is marginal analysis?
n this market, a single company controls the entire supply of a product with no close substitutes, giving it significant pricing power.
What is monopoly?
The willingness and ability of buyers to purchase a certain amount of a good or service at a given price.
What is demand?
A good is considered this when a small change in price leads to a large change in the quantity demanded.
What is elastic?
This happens when the quantity of a product supplied is less than the quantity demanded?
What is a shortage?
A financial metric calculated by dividing the net profit of an investment by its initial cost.
What is return on investment
This type of market structure, dominated by a few large firms, often leads to marketing decisions where companies closely watch and react to their competitors' actions.
What is an oligopoly?
The point at which the quantity demanded by buyers is equal to the quantity supplied by sellers.
What is equilibrium price?
When the price of a good increases by 10% and the quantity demanded decreases by only 2%, this good is considered to be this.
What is inelastic?
The rivalry between sellers trying to gain customers?
What is competition?
When considering whether to build a new public park, a city government would use this tool to compare the financial costs of construction with the non-monetary benefits like community health and happiness.
What is Cost/ Benefit analysis?
A company in this market structure would spend little to no money on advertising because its product is identical to others and consumers choose based solely on price.
What is pure competition?
The competition among sellers for buyers and among buyers for goods and services, which is a key force in determining prices.
What is a market?
Products with many close substitutes, such as different brands of soft drinks, tend to have this type of price elasticity of demand.
What is elastic demand?
When the quantity supplied of a good is greater than the quantity demanded, we get this economic condition.
What is a surplus?
A baker deciding whether to make one more batch of cookies would use this tool to compare the added cost of ingredients and labor against the additional revenue from selling that batch. Question:
What is marginal analysis?
A firm's primary marketing decision in a monopolistic competition market is to differentiate its product through features, quality, or this.
What is branding?
The interaction between these two groups of people determines the price and quantity of goods and services in a market.
Who are buyers and sellers?
This describes a product for which a change in price has no effect on the quantity demanded, such as a life-saving medication.
What is perfectly inelastic?
This economic factor describes the amount of a product a producer is willing to offer for sale at a specific price?
What is supply?
A company that invests $100,000 in a new marketing campaign and sees its profits increase by $150,000 has achieved a positive result using this metric.
What is Return on Investment?
A government-granted patent that protects an inventor's exclusive right to a product is a common reason for the existence of this market structure.
What is a monopoly?
This economic principle describes how buyers and sellers, through their collective actions of demanding and supplying goods, naturally push the market toward a state of balance where supply equals demand.
What is the law of supply and demand?
The number of close substitutes, the percentage of a person's budget the good takes up, and the time period considered are all factors that influence this.
What is the price elasticity of demand?