Stack #2653916

Question Answer
The law of diminishing marginal utility suggest that? consumers experience diminshing additional satisfaction as theey consume more of a good or service
a budget constraint ? indicates the limited amount of income available to consumers to spend on goods and services
whats the diffrence between the short and the long run? in the short run, at least one of the firms inputs is fixed, while in the long run a firm is able to cary all its imputs and adopts new technology
an implicit cost is a non monetary oppurtunity cost
HOW ARE IMPLICIT COST DIFFRENT FROM EXPLICIT COST? AN EXPLICIT COST IS A COST THAT INVOLVES SPENDING MONEY, WHILE AND INPLICIT COST IS A NON MONETARY COST.
THE PRODUCTION FUNCTION IS THE RELATIONSHIP BETWEEN? THE IMPUTS EMPLOYED BY A FIRM AND THE MAXIUMUM OUTPUT IT CAN PRODUCE WITH THOSE INPUTS
THE LAW OF (EVENTUALLY) DIMINISHING RETURNS STATES THAT ADDING MORE OF A VARIBLE INPUT TO THE SAME AMOUNT OF A FIXED INPUT WILL EVENTUALLY CAUSE THE MARGINAL PRODUCT OF THE VARIABLE INPUT TO DECLINE
FOR A MARKET TO BE PERFECTLY COMPETITIVE THERE MUST BE MANY BUYERS AND SELLERS, WITH ALL FIRMS SELLING IDENTICAL PRODUCTS, AND NO BARRIERS TO NEW FIRMS ENTERING THE MARKET
A PRICE TAKER IS A FIRM THAT IS UNABLE TO AFFECT THE MARKET PRICE
THE MARGINAL PRODUCT OF LABOR IS THE ADDITIONAL OUTPUT THAT RESULTS WHEN ONE MORE WORKER IS HIRED, HOLDING ALL OTHER RESCOURSES CONSTANT
HOW ARE PROFITS CALCULATED TOTAL REVENUE MINUS TOTAL COST- TR-TC
A CHARACTERISTIC OF THE LONG RUN IS ALL INPUTS CAN BE VARIED
UTILITY IS
WHEN MAXIMIZING PROFITS, MR=MC IS EQUIVELENT TO P=MC BECAUSE THE MARGINAL REVENUE CURVE FOR A PERFECTLY COMPETITIVE FIRM IS THE SAME AS ITS DEMAND CURVE
WHY DO SINGLE FIRMS IN PERFECTLY COMPETITIVE MARKES FACE HORIZONTAL DEMAND CURVES WITH MANY FIRMS SELLING AN IDENTICLE PRODUCT , SINGLE FIRMS HAVE NO EFFECT ON MARKET PRICE.
if the market is $25 in a perfectly competitive market , then the marginal revenue of the selling the fifth unit is $25 – p=MR it will always be same as price
the shut down point for an individual firm occurs a the minimum of the average varible cost curve
why are firms willing to accepts losses in the short run but not in the long run there are fixed costs in the short run but not in the long run
whats the relationship between a perfectly competitive firms marginal cost curves and its supply curve a firms marginal cost curve is equal to its supply curve for prices above average varible cost (ATC)
a monopolistically competitive firm is not productivly effecint because it produces at an output levele where average total cost is not at a minimum
when are fimrs likley to enter an industry? and when are they likley to exit? economic profits attract firms to enter an industry and economic losses cause firms to exit the industry
they entry of new firms cause the deman curve for an existing firm in monopolistically competitive market to shift the the left becasue ____ and become more elastic since each will have a smaller share of the existing market ; consumers will have additional choice
which of the following is the example of and monopoly? alabama power ( electric company)
unlike in perfectlu comp markets in monopolistacally comp markets firms face downward sloping demand curves, and the products competitors sell a diffreniniated.
which is likley to be a varible cost for a buisness firm cost of shipping products (VC)
a market demand curve is derived by adding horizontally the individual demand curves
the marginal cost curve intersects the atc curve at the level of output where average varible cost is at a minimum when the marginal cost of the last unit productes is below the average, it pulls the average down, and when the marginal cost is above average it pulls the average up.
at the level of output increases the diffrence between the atc and the avc decreases because average fixed cost decreases as output increases

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