Consumers will buy more of a good when its prices is lower and less when its price is higher.

Producers offer more of a good or service as its prices increases and less as its price falls.

The point at which the quantity demanded for a product or service is equal to the quantity supplied of that product or service.

A minimum price consumers are required to pay for a good or service.

A maximum price consumers are required to pay for a good or service.

A market in which a single seller dominates.

A market structure in which a few large firms dominate a market.

A market structure in which many companies sell products that are similar but not identical.

A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices.

What is the Profit Maximizing Formula?

What is the difference between Accounting (Normal) Profit and Economic Profit?

Bob currently earns $50,000 per year as a financial planner. If he quit his job and opened an ice cream stand on the beach, earning $25,000 per year in accounting profit, what is his Economic Profit?

According to the Profit Maximizing Formula, how many units should this firm produce?

Which of the following is the best definition for Marginal Cost?

Which costs change based on the number of units produced?

Labor, utilities, and raw materials are an example of which of these?

A change in Fixed Costs affect which of the following? (check all that apply)

A change in Variable Costs affect which of the following? (check all that apply)

Does an increase in Fixed Costs affect a firm's output?

Does an increase in Variable Costs affect a firm's output?

Which of the following best explains why firms experience Increasing Marginal Returns?

Which of the following best explains why firms experience Decreasing Marginal Returns?

With which worker does this firm begin to experience Diminishing Marginal Returns?

With which worker does this firm begin to experience Negative Marginal Returns?

What is the best definition for Short Run?

What is the best definition for Long Run?

A firm expands its fixed resources and its overall costs of production go down. It is experiencing...

A firm expands its fixed resources and its overall costs of production go up. It is experiencing...

Which type of market have we studies in this unit?

Which of these is NOT a characteristic of Perfectly Competitive markets?

Which of these best explains why Mr. Darp is horizontal?

If a firm's Marginal Costs increase, its output will...

If a firm's Marginal Revenue increases, its output will...

In the long run, a Perfectly Competitive Firm will..

Which of the following best describes Productive Efficiency?

Which of the following best describes Allocative Efficiency?

What will happen when there is short-term PROFIT in a market?

What will happen when there is short-term LOSS in a market?

Which of the following would be considered a substitute for a strawberry?

If a good or service has a lot of substitutes, it is considered to be.

According to the concept of price signals, if skinny jeans are selling at high prices, what will happen?

Stephen decided that his job as a doctor is too stressful, even if they do make $125,000 a year. He quit his medical practice and opened up a comic book store.

The start up costs were $20,000 but he made $70,000 his first year.

Overall, what was Stephen's economic profit from making the switch? (Remember to account for opportunity costs)

From an economic standpoint, if the explicit and implicit wage and benefits outweigh the explicit and implicit costs of making a decision, you should make the decision.

For his fast food place, Louie's Sub Shop, Louie decided that he needed to get an oven to make toasted subs since they are all the rage. A new oven to toast his subs will cost $10,000 if he wants a quality one.

In this example, what type of cost is the oven?

Lisa's Pizza Joint has a major problem: this year there is a shortage of tomatoes due to a drought, making the prices for tomatoes skyrocket. Although her customers won't like it, Lisa has to raise the prices on her pizzas.

In this example, what type of cost are the tomatoes?

What is the equation for the Total Cost of something?

If Louie's oven cost $10,000 and he's made 1,000 pizzas since he got it, what is the average cost of the oven so far?

A graphic portrayal showing how a change in the amount of a single variable input affects total outputs.

Production Period long enough to change the amount of variables and fixed inputs used in production.

If a higher level of production allows workers to

specialize in particular tasks, a firm will likely exhibit

________ of scale and ________ average total cost.

What is the goal of a firm?

Total Revenue (minus) Explicit and Implicit cost =

What is the profit maximizing condition?

The image above shows a firm making

Should the following firm shutdown?

During the winter, theme parks in Orlando close earlier than in the summer. The reason the theme parks close early during the winter is because during that season the marginal revenue from staying open later is ________ the marginal cost.

The above figure shows a perfectly competitive firm. If the market price is $15, the firm

The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm

The figure above shows a perfectly competitive firm. If the market price is $20 per unit, then the firm produces ________ units and makes an economic profit that is ________.