Profit over and above normal profit and in the absence of entry barriers performs an imporant economic function of attracting new firms into the market.
1 of 7
hdjd
A condition characterized by severe lack of basic human needs like shelter and clean water.It depend not only on income by also access to services.
2 of 7
Adverse selection
A situation where people who buy insurance have a better idea of the risks they face compared to the seller of insurance. People with larger risks are more likely to buy insurance than people who face smaller risks.
3 of 7
Capital employed
Reallocation of resources between markets which improves overall economic welfare. For this to happen P=MC in every market.
4 of 7
Altruism
Concern of the welfare of others
5 of 7
Artificial barriers
Barriers erected by the firm themselves like patents and high levels of advertising.
6 of 7
Asymmetric information
Where one party of a market posses greater material knowledge than other parties in the market.
7 of 7
Other cards in this set
Card 2
Front
A condition characterized by severe lack of basic human needs like shelter and clean water.It depend not only on income by also access to services.
Back
hdjd
Card 3
Front
A situation where people who buy insurance have a better idea of the risks they face compared to the seller of insurance. People with larger risks are more likely to buy insurance than people who face smaller risks.
Back
Card 4
Front
Reallocation of resources between markets which improves overall economic welfare. For this to happen P=MC in every market.
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