MANAGERIAL ECON FINALS

– It says that as successive increments of a variable resource are added to a fixed cost, the marginal product of the variable resource will eventually decline.

is a short -run horizon phenomena caused by fixed of at least one factor of production such as land, plant, building, and machineries

___ means that the marginal cost is increasing, and the increasing marginal cost leads to increasing average costs that will result to decreasing profit.

___mean that the long-run average costs are constant or does not change in relation to the output

____ rmean that the long-run average costs are constant or does not change in relation to the output

__ ) is smaller than the cost of underpricing (lower margins), then price higher than would fill capacity, or price otherwise (vice versa)

is the charging of different prices to different consumers or group of consumers for a given commodity

It is charging higher prices for less-price sensitive buyers or charging lower prices for more price-sensitive buyers.

the scheme is done if you can identify the low-value buyers from the high-value buyers and prevent them from reselling the lower-priced goods to high-value buyers (arbitrage).

seller cannot identify perfectly identify the two groups or cannot prevent arbitrage,