Econ 200101 - Study guides, Class notes & Summaries

Absolute advantage - one producer's ability to make more than another producer with the same quantity of resources accounting profit - profit calculated by subtracting the explicit costs from total revenue adverse selection - phenomenon existing when one party has information about some aspect of product quality that the other party does not have antitrust laws - laws that attempt to prevent oligopolies from behaving like monopolies asymmetric information - an imbalance in information t...

d. - In a perfectly competitive market, when the price is greater than the minimum average total cost for most firms, some will: a. exit until the price drops to equal minimum ATC b. exit until the price increases to equal minimum ATC c. enter until the price increases to equal minimum ATC d. enter until the price drops to equal minimum ATC a. - Perfect price discrimination: a. allows each customer to pay exactly what they are willing and able to pay b. maximizes consumer surplus c. mi...

Resource - Any item, whether a gift of nature, the result of production, or the result of human effort, that is used to produce goods and services. land - all natural resources used in production labor - all physical and mental activity devoted to producing goods and services capital - the tools, equipment, machinery, and factories used in the production of goods and services entrepreneurial ability - the talent/ability to combine land, labor, and capital to produce goods and services ...

Sunk cost - a cost that has already been committed and cannot be recovered opportunity cost - whatever must be given up to obtain some item Factors of production - land, capital, labor, entrepreneurship, also known as limited resources or inputs Markets for... - Factors of production, goods and services, also known as outputs or unlimited needs Markets are... - Where you can buy or sell Land includes all... - Natural resources