Econ

Total Revenue (TR)

Total Cost (TC)

What is the objective of a firm?

Explicit Costs

Implicit Costs

Production Function

Marginal Product

Economic Profit

Accounting Profit

Total Cost Curve

As quantity _____ the Total Cost Curve gets steeper typically.

Average Cost

Marginal Cost

Examples of Fixed Costs

Examples of Variable Costs

Most fixed costs are only fixed in the ________.

After fixed costs are spent, they are called ________.

The ATC in the short run must always be

Production function flattens at

Marginal product of labor _____ at high quality.

If MR > MC, what will raise profits?

If MR < MC, what will raise profits?

If MR = MC, what will a change in production do?

Price raise causes

When does a firm maximize profit?

Reasons firms experience loss

Firms should continue to operate at a loss in the short run if

Firms should exit if

Profit =

Positive profit leads

Negative profit leads

Firm cost involving monetary outlays, considered when calculating both accounting and economic profits

Firm cost that varies directly with the quantity of output produced

Opportunity cost to a firm that does not involve monetary outlays

Increase in firm's total revenue from sale of an additional unit of output

This curve passes through the minimum values of AVC and ATC

Reduction in total surplus created by monopoly profit maximization

Measure of the market share controlled by a small number of sellers

Practice allowing a monopolist to take surplus from high-demand consumers

Market structure featuring strategic interaction among competing firms

Market structure with free entry & exit and significant product variety

Free entry and exit means that the number of firms in the market adjusts until

In perfect competition, firms will choose an output level at which marginal cost:

In an oligopoly, each firm knows that its profits:

If marginal cost is above average total cost, average total cost must be

What is a characteristic of monopolistic competition?

A feature shared by monopoly and monopolistic competition is that, in both of these market structures:

If a perfectly competitive firm is earning profits in the short run: a. it should assume it will be able to earn those same profits in the long run; b. its average variable costs must be below the market price; c. its average total costs must be below the market price; d. it should prepare for entry from additional firms.

Which of the following would be most likely to have monopoly power? a. A national florist. b. An online bookstore. c. A local restaurant. d. A regional electrical power distribution firm.

In which of the following markets is strategic interaction among firms most likely? a. Markets in which firms own patents and copyrights. b. Markets in which many small firms compete with identical product. c. Markets in which many firms compete with differentiated products. d. Markets dominated by two or three large firms.

A fixed cost is one that:

A concentration ratio:

The legislation passed by Congress in 1890 that outlawed contracts, combinations, and conspiracies in restraint of trade was the:

Antitrust laws allow the government to:

HHI Index

Economic profits are zero at the level of output at which

Governments achieve a 'regulatory compromise' in controlling prices of natural monopoly firms by:

In perfect competition, an individual firm's short-run supply curve is the same as

Accounting profits are higher than economic profits because:

Profitable operation in the long run is possible only for:

Minimum average total cost (ATC) can be found on a graph by

The quantity at which min. AVC is found must be lower than.