Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
14 Cards in this Set
- Front
- Back
|
Competitive Market
|
No single buyer or seller has any influence on the market price and that all firms must sell their output at the same market price.
|
|
|
Fixed Costs
|
Costs that do not vary with output.
|
|
|
Variable Cost
|
Costs that do vary with output.
|
|
|
Total Revenue
|
Price times quantity sold: TR = P x Q.
|
|
|
Total Cost
|
The cost of producing a given quantity of output.
|
|
|
Marginal Revenue (MR)
|
The change in total revenue from selling an additional unit of output.
|
|
|
Marginal Cost (MC)
|
The change in total cost from producing an additional unit of output.
|
|
|
Average Cost
|
The per unit cost of production.
|
|
|
Monopoly Power
|
The ability of a firm to raise price above average cost
without fear of other firms entering the market. |
|
|
Natural Monopoly
|
Exists when a single firm can supply the entire market at a lower cost than two or more firms.
|
|
|
Price Discrimination
|
Selling the same product at different prices to different customers.
|
|
|
Perfect Price Discrimination (PPD)
|
Each person is charged their maximum willingness to pay.
|
|
|
Bundling
|
A strategy that requires products be purchased together in a bundle or package.
|
|
|
Tying
|
A form of price discrimination in which one good, called the base good, is tied to a second good called the variable good.
|
