microeconomics finale

elasticities

a percentage change divided by a percentage change

pure/perfect competition

firms actions have no impact on the price of its inputs or the price of its output

international trade

fundamental to the wealth of nations

health care costs

rising at a rate that exceeds overall inflation

twin economic US problems

rising costs and moral hazard caused by the structure of the concentration of payments in the hands of government

term that indicates a normative statement

should/ ought to

monopolist

will always sell its output at a higher price and sell less total output than a competitive firm with same cost structure

unions

worker driven intervention in the labor market, raise the wages of its members

world without trade...

worlds output and the output of every economy in the world shrinks

useful economic model

yields usable predictions and implications for the real world.

short run production

you cannot change same factors of production

union activism examples

40 hour work week, safety standards, prohibitions of child labor

monopsony

Market with only one buyer (like labor)

total costs=

TFC+TVC

long run production

able to change all factors of production

economic view:

all forms of discrimination reduce an economy's gross domestic product

poverty

an economy will never eliminate relative poverty

political instability

democracy with an extremelt skewed distribution of income and wealth

demand curve

derived demand curves of firms

cost structure

determines its demand for inputs such as labor

demand

different quantities of a good/service people will buy at diff possible prices

total cost of the firm

included implicit and explicit costs

benefit of unions

increase the stability of the workforce

long-run average cost curve

locus of points representing the minimum unit cost of producing any given rate of output when all inputs may be adjusted.

when marginal product is rising,

marginal cost is falling

monopsonist will employ labor to the point at which the

marginal factor cost equals the marginal revenue product of labor

when the price of an item can freely adjust...

market will always move towards equilibrium

every point on the long run average cost is

on a short-run average total cost curve

United states

pays more as a country on per capita basis than any other country, however has poorer health health outcomes

marginal cost curve intersects

the minimum of the average variable cost and average total cost curves