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