Sample Multiple-Choice Questions
... (E) It means that resources are plentiful and opportunities to produce greater amounts of goods and services are unlimited. 5. To be considered scarce, an economic resource must be which of the following? I. Limited II. Free III. Desirable (A) I only (B) I and II only (C) II and III only (D) I and I ...
... (E) It means that resources are plentiful and opportunities to produce greater amounts of goods and services are unlimited. 5. To be considered scarce, an economic resource must be which of the following? I. Limited II. Free III. Desirable (A) I only (B) I and II only (C) II and III only (D) I and I ...
Consumers, Producers, and the Efficiency of Markets
... affect the market price. transactions have side effects, called externalities, that affect bystanders. (example: pollution) ...
... affect the market price. transactions have side effects, called externalities, that affect bystanders. (example: pollution) ...
Law of Demand
... • Market in which there are many buyers and sellers so that each has a negligible impact on the market • Sellers have little control over the prices • Sellers: They know that if they raise their prices to much, buyers will move to their competitors • Buyers : Have little control over the market pric ...
... • Market in which there are many buyers and sellers so that each has a negligible impact on the market • Sellers have little control over the prices • Sellers: They know that if they raise their prices to much, buyers will move to their competitors • Buyers : Have little control over the market pric ...
pricing and the law
... • Supply—the amounts of a good or service that will be offered for sale at different prices during a specified period. • Pure competition—a market structure with so many buyers and sellers that no single participant can significantly influence price. • Monopolistic competition—diverse parties exchan ...
... • Supply—the amounts of a good or service that will be offered for sale at different prices during a specified period. • Pure competition—a market structure with so many buyers and sellers that no single participant can significantly influence price. • Monopolistic competition—diverse parties exchan ...
General Economic Equilibrium - Institute for Advanced Studies (IHS)
... experience. Nevertheless, while the criticisms are, in my judgment, not without some validity, they have not given rise to a genuine alternative model of detailed resource allocation. The fundamental question remains, how does an overall total quantity, say demand, as in the Keynesian model, get tra ...
... experience. Nevertheless, while the criticisms are, in my judgment, not without some validity, they have not given rise to a genuine alternative model of detailed resource allocation. The fundamental question remains, how does an overall total quantity, say demand, as in the Keynesian model, get tra ...
Document
... complementary explanations for the law of demand. When the price changes, these effects work in combination to change in the quantity demanded in the opposite directions. ...
... complementary explanations for the law of demand. When the price changes, these effects work in combination to change in the quantity demanded in the opposite directions. ...
Supply Curve for Pure `n` Simple T
... In an oligopoly a few businesses (protected by entry barriers) provide standard or similar products. In a monopoly a single business (protected by entry barriers) provides a product with no close substitutes. ...
... In an oligopoly a few businesses (protected by entry barriers) provide standard or similar products. In a monopoly a single business (protected by entry barriers) provides a product with no close substitutes. ...
Market Power and Monopoly
... in which firms have pricing power is the presence of barriers to entry, or factors that prevent entry into the market with large producer surplus. • Normally, positive producer surplus in the long run will induce additional firms to enter the market until it is driven to zero. • The presence of barr ...
... in which firms have pricing power is the presence of barriers to entry, or factors that prevent entry into the market with large producer surplus. • Normally, positive producer surplus in the long run will induce additional firms to enter the market until it is driven to zero. • The presence of barr ...
Effects of Income Changes
... as a snob good its value is greatly reduced if more people own it. Sales decrease as a result. Examples: Rolex watches and long lines at the ski lift. ...
... as a snob good its value is greatly reduced if more people own it. Sales decrease as a result. Examples: Rolex watches and long lines at the ski lift. ...
Firm / Production Costs 7 Cost Concepts (Short-run)
... process, the firm is able to decrease its unit cost. ...
... process, the firm is able to decrease its unit cost. ...
Supply and Demand
... Socially optimal quantity maximizes the total surplus for the economy from producing and selling a good Economic efficiency -- all goods at their socially optimal level Efficiency Principle: equilibrium price and quantity are efficient if Sellers pay all the costs of production Buyers rece ...
... Socially optimal quantity maximizes the total surplus for the economy from producing and selling a good Economic efficiency -- all goods at their socially optimal level Efficiency Principle: equilibrium price and quantity are efficient if Sellers pay all the costs of production Buyers rece ...
Ch 15 - Del Mar College
... • Price discrimination is not possible when a good is sold in a competitive market since there are many firms all selling at the market price. In order to price discriminate, the firm must have some market power. • Perfect Price Discrimination • Perfect price discrimination refers to the situation w ...
... • Price discrimination is not possible when a good is sold in a competitive market since there are many firms all selling at the market price. In order to price discriminate, the firm must have some market power. • Perfect Price Discrimination • Perfect price discrimination refers to the situation w ...
BEE2016 Intermediate Microeconomics I slides
... “I “Some learnt that collusion can take place in a people are undercutting bastards!!! competitive market even any actual Seriously though, it waswithout interesting to see how the meeting place between the two parties.” theorytaking is shown in practise.” ...
... “I “Some learnt that collusion can take place in a people are undercutting bastards!!! competitive market even any actual Seriously though, it waswithout interesting to see how the meeting place between the two parties.” theorytaking is shown in practise.” ...
Externality
In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.For example, manufacturing activities that cause air pollution impose health and clean-up costs on the whole society, whereas the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if the producer were required to pay all associated environmental costs. Because responsibility or consequence for self-directed action lies partly outside the self, an element of externalization is involved. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved. Thus, unregulated markets in goods or services with significant externalities generate prices that do not reflect the full social cost or benefit of their transactions; such markets are therefore inefficient.