important things from extra notes

Card Set Information

Author:
ndumas2
ID:
73985
Filename:
important things from extra notes
Updated:
2011-03-20 16:00:19
Tags:
colander chap
Folders:

Description:
terms and formulas
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user ndumas2 on FreezingBlue Flashcards. What would you like to do?


  1. Market structure
    refers to the physical charteristics of the market within which firm interact, determiend by the number of firms in the market and teh barreis to entry
  2. Monopolistically competitive market
    a market in which there are many firsm selling differenitiated products and few barriers to entry
  3. Oligopolistic Market
    a market in which there are only a few firms and firmes explicity take other firms likely tor esponce into accont
  4. Charaterstics of Monopolistic competition
    • many sellers
    • product differentation
    • multiple dimensions of competition
    • ease of entry of new firms
  5. Contestable marekt model
    a model of oligopolies where barriers to entry and exit not a market structure determine price and output decisions and a competitive price is set
  6. Explicit cost
    out of pocket costs (rent wages supplies etc)
  7. Implicit Cost
    lost money fromnot doing something else ( i.e quitting one job to do another)
  8. Margional cost is
    the change in total cost from producting one more unit of a good or service
  9. Total Revenue
    prce X quantyt (for one good)
  10. Firm behavior in shourt run: how much to produce?
    Case 1 P =ATC
    • EP =M0 (accounting profit = implicit cost)
    • equallibrium quantity > 0
  11. Firm behavior in shourt run: how much to produce?
    Case 2 ATC> PRICE greater or equal to AVC
    • EP = 0 (accounting profit = implicit cost)
    • equillibrium quantity > 0
  12. Firm behavior in shourt run: how much to produce?
    Case 3 ATC>P> OR = AVC
    • EP = negative (accounting profit < implicit costs)
    • equillibrium quantity > 0? or = 0? depends on chart
  13. Firm behavior in shourt run: how much to produce?
    Case 4 P<ATC
    • EP = Negative
    • equillibrium quantity > 0? or = 0? depdnds on choice
    • shutting down minimizes losses

What would you like to do?

Home > Flashcards > Print Preview