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17 Cards in this Set
- Front
- Back
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characteristics of a monopoly
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-one firm
-price makers -controls the market -price discrimination can happen |
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characteristics of public goods
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-inclusiveness principal
-marginal cost = 0 -externalities benefit |
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characteristics of perfect competition
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-large number of firms
-easy to enter market -price takers -demand curve is elastic |
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characteristics of private goods
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-exclusiveness principal
-marginality cost does not = 00 -externalities cost |
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economic activities of government
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-promote competition
-promote employment -produce public goods |
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different types of unemployment
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-seasonal
-frictional -cyclical -structural |
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phases of business cycle
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-peak/boom
-trough -expansion -recession |
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different types of taxation
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-progressive:income ^ %tax^
-proportional: diff income pay same % -regressive: income^ %tax v |
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marginal cost of labor
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cost of hiring one extra worker
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marginal revenue productivity of labor
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revenue recieved from one worker
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marginal physical productivity of labor
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how much one worker can produce
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total cost
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fixed cost + variable cost
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optimal level of employment
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marginal cost of labor = marginal revenue productivity of labor
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optimal level of output
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marginal cost=marginal revenue
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average cost
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total cost / quantity
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marginal cost
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cost of one extra unit of product
(change in cost/change in quantity) |
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factors of market failure
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-unemployment
-inflation -unfair distribution of income -monopoly market power -not producing public goods |
