PT Econ

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What is total revenue?
total receipts from sales of a given quantity of goods or services
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How is total revenue calculated?
by multiplying the quantity of goods sold by the price of the goods
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How do you calculate marginal cost?
divide the difference in total cost by the difference in output between 2 systems
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What is marginal cost?
the marginal cost of production is the change in total production cost that comes from making or producing one additional unit
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Imagine a company coal town, where the coal company acts as the sole employer and therefore the sole purchaser of labor in the town. What is this?
A monopsony
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In perfect competition, an increase in price would...
lead to a decline in demand
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What is monopsony?
a market situation in which there is only one buyer
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What is an oligopoly?
a state of limited competition, in which a market is shared by a small number of producers or sellers.
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What are supernormal profits?
supernormal profits are earned when total revenue is greater than the total costs
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let's suppose a market has fifty competitors. However, the top three dominate 90% of the market. What market is this?
That market is an oligopoly.
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Other cards in this set

Card 2

Front

How is total revenue calculated?

Back

by multiplying the quantity of goods sold by the price of the goods

Card 3

Front

How do you calculate marginal cost?

Back

Preview of the front of card 3

Card 4

Front

What is marginal cost?

Back

Preview of the front of card 4

Card 5

Front

Imagine a company coal town, where the coal company acts as the sole employer and therefore the sole purchaser of labor in the town. What is this?

Back

Preview of the front of card 5
View more cards

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