Thinkwell`s Microeconomics Please note: the transcripts are
... In the last lesson we defined Economics as the study of rational choice under conditions of scarcity. Now we will
introduce a second definition of Economics that may seem to have a little more to do with business. Economics is the
study of the creation and distribution of value.
To understand the im ...
Ch14 - Multiple Choice - Sec01 - Firms in Competitive Markets
... MSC: Definitional
3. Which of the following is a characteristic of a competitive market?
a. There are many buyers but few sellers.
b. Firms sell differentiated products.
c. There are many barriers to entry.
d. Buyers and sellers are price takers.
LOC: Perfect ...
... sports, you are starved, and so you visit
a local pizzeria. That first slice tastes
great and puts a serious dent in your
hunger. The second is not quite as
good as the first. A third is just fair. You
don’t even consider a fourth slice. The
satisfaction you derive from an additional unit of a produ ...
... The intercept of the line on the y-axis is the
price at which Bob buys zero hamburgers.
The slope describes Bob’s behavior when the
price changes. It means that Bob increases his
consumption by one hamburger for every $.50
decrease in price.
You determine the slope by dividing the
change in the y va ...
... There is allocative inefficiency. ( P > MC )
The monopolist does not produce all units that
consumers value more than it costs to make
Firms, Prices and Markets
... such calculations.) We do work through numerical examples, but the goal is to illustrate
concepts that can be applied to qualitative decision problems.
Hence, the math in this book is basic—no more than what any student would have been
exposed to in high school or in a first-year college course at t ...
8 POSSIBILITIES, PREFERENCES, AND CHOICES
... equals $60 per month, what is the price of a
magazine and the price of a CD?
A) The price of a magazine is $12 per magazine
and the price of a CD is $6 per CD.
B) The price of a magazine is $5 per magazine and
the price of a CD is $10 per CD.
C) The price of a magazine is $4 per magazine and
the pri ...
NetLink Configuration Utility
... NetLink is detected in the list, but cannot download configuration parameters or firmware.
If the IP address displayed in the list is 0.0.0.0, set a temporary IP Address.
If the IP address displayed in the list is NOT 0.0.0.0, verify that the IP address is valid for the local network.
An IP address ...
Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. The reason why the price of diamonds is higher than that of water, for example, owes to the greater additional satisfaction of the diamonds over the water. Thus, while the water has greater total utility, the diamond has greater marginal utility. The theory has been used in order to explain the difference in wages among essential and non-essential services, such as why the wages of an air-conditioner repairman exceed those of a childcare worker.The theory arose in the mid-to-late nineteenth century in response to the normative practice of classical economics and growing socialist debates about social and economic activity. Marginalism was an attempt to raise the discipline of economics to the level of objectivity and universalism so that it would not be beholden to normative critiques. The theory has since come under attack for its inability to account for new empirical data.Although the central concept of marginalism is that of marginal utility, marginalists, following the lead of Alfred Marshall, drew upon the idea of marginal physical productivity in explanation of cost. The neoclassical tradition that emerged from British marginalism abandoned the concept of utility and gave marginal rates of substitution a more fundamental role in analysis. Marginalism is an integral part of mainstream economic theory.