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14 Cards in this Set

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  • Back
Kinked demand curve
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
Inefficiency
this is the expected outcome of monopolistic competition derived from underutilizing capacity
P > CM
relationship between price and MC for both monopolistic competion and oligopoly
P = average cost
tendency for monopolistic competition in the long run
Derived demand
the demand for a resource such as labor is derived from the product that the resource helps to produce
Wage elasticity of demand
the percentage change in quantity demanded of labor in response to a percentage change in a wage rate
Marginal revenue product
the addition to the firm's revenue as the result of an additional output for an additional unit of labor
Marginal Factor Cost
the additional cost for each additional unit of labor hired
Marginal Physical Product
the additional output produced as one more unit of labor(resource) is added
Monopsony
A market in which there is a single buyer of labor
Human Capital
the investment in people that increases their future monetary and psychic income
Compensating Wage differentials
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
F: Profit Max in the hire of more than one resource
MRPl/MFCl = MPPk?MFCk ... MPPn/MFCn
F: criterion for cost min for more than one resource
% Change in Q demanded of labor/ % change in wage rate