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15 Cards in this Set

  • Front
  • Back
Marginal Cost
Added cost per unit of output produced
Fixed Cost
Costs resulting from fixed inputs
Marginal Benefits
Extra benefits from, for example, increased consumption of commodity
Marginal Revenue
Extra revenue received by firm for selling one added unit of good
Marginal Product
AMOUNT OUTPUT INCREASES w/ addition of 1 unit of output
Price Taker
Firms that take price of good or service they sell as given; PRICE IS UNAFFECTED BY THE LEVEL OF PRODUCTION FROM THESE FIRMS
Perfect Competition
When each firm is a price taker—no firm can influence market price; At market price, firm can sell as much as they want, BUT LOSES ALL SALES IF RAISE PRICE
Average Cost
Total Costs DIVIDED by Total Ouput
TC/Q
Average Variable Costs
Total variable costs DIVIDED by total output
Externality
Occurs when firm/individual takes action but doesn't bear all costs (negative externalities) or all benefits (positive externalities)
Private Marginal Cost
Marginal cost of production borne by producer of good
In case of negative externality: private marginal cost is less than social marginal cost
Total Costs
Sum of all fixed costs and variable costs
Variable Costs
Costs resulting from variable inputs
Transaction Costs
Extra costs (beyond price of purchase) of conducting a transaction, whetehr they are money, time, financial.
Revenue
Amount firm receives from selling its products
price received X quantity sold