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14 Cards in this Set
- Front
- Back
Kinked demand curve
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this curve illustrates the interdependence of rivals under collusive oligopoly in which rivals match price decreases but do not match price increases of an oligopolist
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Inefficiency
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this is the expected outcome of monopolistic competition derived from underutilizing capacity
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P > CM
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relationship between price and MC for both monopolistic competion and oligopoly
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P = average cost
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tendency for monopolistic competition in the long run
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Derived demand
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the demand for a resource such as labor is derived from the product that the resource helps to produce
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Wage elasticity of demand
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the percentage change in quantity demanded of labor in response to a percentage change in a wage rate
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Marginal revenue product
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the addition to the firm's revenue as the result of an additional output for an additional unit of labor
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Marginal Factor Cost
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the additional cost for each additional unit of labor hired
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Marginal Physical Product
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the additional output produced as one more unit of labor(resource) is added
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Monopsony
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A market in which there is a single buyer of labor
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Human Capital
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the investment in people that increases their future monetary and psychic income
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Compensating Wage differentials
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the difference in wages due to higher pay for workers who have higher risks inherent in their work or for other work conditions such as highly structured job
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F: Profit Max in the hire of more than one resource
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MRPl/MFCl = MPPk?MFCk ... MPPn/MFCn
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F: criterion for cost min for more than one resource
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% Change in Q demanded of labor/ % change in wage rate
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