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13 Cards in this Set
- Front
- Back
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Economies of scale
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long run average cost falling as output expands
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Marginal Cost
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the change in total cost divided by the change in output
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Sunk costs
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already committed costs that you cannot recover
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Marginal product
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extra output that can be produced by using one more unit of the input, holding other inputs fixed
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Economic Profit
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total revenue minus the sum of the explicit and implicit costs
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Marginal Revenue
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change in total revenue divided by the change in output
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Natural Monopoly
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single firm can supply a good to an entire market at smaller cost than could two or more firms
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Accounting profit
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Total revenue minus explicit cost
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Marginal Returns
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The change in the quantity of total product resulting from a unit change in a variable input, holding all other inputs fixed
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Monopoly
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The exclusive control of the supply or trade in a commodity
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Average Total Cost
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sum of all the production costs divided by the number of units produced.
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Oligopoly
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a state of limited competition, market shared by few producers and sellers
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Nash Equilibirum
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Economic agents interacting with one another, choose their best strategy given the strategies that all others have chosen
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