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Microeconomics
Intro
219
Economics
Undergraduate 2
09/17/2013

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Term
tradeoff
Definition
scarcity in relation to wants means you face tradeoffs, therefore you have to make choices
Term
opportunity costs
Definition
the cost of the choice you make is what you give up for it, or the opportunity cost; the amount of other products that must be forgone or sacrificed to produce a unit of a product
Term
choosing a little more or less
Definition
choices are usually made at the margin; we choos a little more or a little less of something
Term
the influence of incentives
Definition
the choices you make are influenced by incentives
Term
specialization and trade
Definition
specialization and trade will improve the well being of all participants
Term
the effectiveness of markets
Definition
markets usually do a good job of coordinating trade among individuals, groups, and nations
Term
the role of governments
Definition
governments can occasionally improve the coordinating functions of markets
Term
production and standard of living
Definition
the standard of living of the average person in a particular country is dependent on its production of goods and services. A rise in the standard of living requires a rise in the output of goods and services.
Term
money and inflation
Definition
if the monetary authorities of a country annually print money in excess of the growth of output of goods and services, this practice will eventually lead to inflation
Term
inflation-unemployment tradeoff
Definition
in the short run, society faces a short run tradeoff between inflation and its level of unemployment
Term
economic perspective
Definition
a viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions
Term
utility
Definition
the pleasure, happiness, or satisfaction obtained from consuming a good or service
Term
marginal analysis
Definition
the comparison of marginal ("extra" or "additional") benefits and marginal costs, usually for decision making
Term
scientific method
Definition
the systematic pursuit of knowledge through observing a problem, collecting data, and formulating an dtesting hypotheses to obtain theories, principles and laws.
Term
economic principle
Definition
a statement about economic behavior or the economy that makes it possible to predict the probable effects of certain actions
Term
generalizations
Definition
statements of the nature of the relation between two or more sets of facts
Term
other things equal assumptions
Definition
the assumption that factors other than those being considered are held constant
Term
economic model
Definition
a simplified picture of economic reality; an abstract generalization
Term
microeconomics
Definition
the part of economics concerned with such individual units as industries, firms, and households
Term
macroeconomics
Definition
the part of economics concerned with the economy as a whole
Term
aggregate
Definition
a collection of specific economic units treated as if they were one unit
Term
positive economics
Definition
the analysis of facts to establish cause and effect relationships
Term
normative economics
Definition
the part of economics involving value judgments about what the economy should be like
Term
economic problem
Definition
the need to make choices because society's material wants for goods and services are unlimited but the resources available to satisfy these wants are limited (scarce)
Term
budget line
Definition
a schedule or curve that shows various combinations of two products a consumer can purchase with a specific money income
Term
tradeoff
Definition
the sacrifice of some or all of one economic goal, good, or service to achieve some other goal, good, or service
Term
constant opportunity cost
Definition
an opportunity cost that remains the same for each additional unit as consumer (or society) shifts purchases (production) from one product to another along a straight-line budget line (production possibilities curve)
Term
economic resources
Definition
the land, labor, capital, and entrepreneurial ability that are used in the production of goods and services
Term
land
Definition
natural resources used to produce goods and services
Term
labor
Definition
the physical and mental talents of individuals used in producing goods and services
Term
capital
Definition
human-made resources (buildings, machinery, and equipment) used to produce goods and services
Term
consumer goods
Definition
products and services that satisfy human wants directly
Term
capital goods
Definition
goods that do not directly satisfy human wants
Term
investment
Definition
spending for the production and accumulation of capital
Term
entrepreneurial ability
Definition
the human talents that combine the other resources to produce a product, make non-routine decisions, innovate, and bear risks
Term
innovation
Definition
the first successful commercial introduction of a new product, the first use of a new method of production, or the creation of a new form of business organization
Term
factors of production
Definition
economic resources: land, labor, capital, and entreprenurial ability
Term
production possibilities table
Definition
a table showing the different combinations of two products that can be produced with a specific set of resources in a full-employement, full-production economy
Term
production possibilities curve
Definition
a curve showing the different combinations of goods or services that can be produced in a full employment, full production economy where the available supplies of resources and technology are fixed
Term
law of increasing opportunity costs
Definition
as the production of a good increases, the opportunity cost of producing an additional unit rises
Term
full production
Definition
employment of available resources so that the maximum amount of (or total value of) goods and services is produced; occurs when both productive efficiency and allocative efficiency are realized
Term
economic growth
Definition
an outward shift in the prodcution possibilities curve that results from an increase in factor supplies or quality, or an improvement in technology
Term
post hoc, ergo propter hoc fallacy
Definition
incorrectly reasoning that when one event precedes another the first event must have caused the second event
Term
direct relationship
Definition
the (positive) relationship between two variables that change in the same direction, for example, product price and quantity supplied
Term
inverse relationship
Definition
the (negative) relationship between two avariables athat change in opposite directions, for example, product price and quantity demanded
Term
slope of a straight line
Definition
the ratio of the vertical change (the rise or fall) to the horizontal change (the run) between any two points on a line. The slope of an upsloping line is positive, reflecting a direct relationship between two variables ; the slope of a downsloping line is negative, reflecting an inverse relationship between two variables
Term
vertical intercept
Definition
the point at which a line meets the vertical axis of a graph
Term
economic system
Definition
a particular set of institutional arrangements and a coordinating mechanism for producing goods and services
Term
command system
Definition
an economic system in which most property resources are owned by the government and economic decisions are made by a central government body - socialism or communism
Term
market system
Definition
an economic system in which property resources are privately owned, and markets and prices are used to direct and coordinate economic activities - capitalism
Term
private property
Definition
the right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property
Term
freedom of enterprise
Definition
the freedom of firms to obtain economic resources, to use these resources to produce products of the firm's own choosing, and to sell their products in market of their choice
Term
freedom of choice
Definition
the freedom of owners of property resources to emplye or dispose of them as they see fit, and of consumers to spend their incomes in a manner that they think is appropriate
Term
self interest
Definition
that which each frim, property owner, worker, and consumer believes is best for itself
Term
competition
Definition
the presence in a market of a large number of independent buyers and sellers competing with one another, and the freedom of buyers and sellers to enter and leave the market
Term
market
Definition
any institution or mechanism that brings together buyers and sellers of particular goods, services, or resources for the purpose of exchange
Term
specialization
Definition
the use of the resources of an individual, a firm, a region, or a nation to produce one or a few goods and services
Term
division of labor
Definition
dividing the work required to produce a product into a number of different tasks that are performed by different workers
Term
medium of exchange
Definition
items sellers generally accept and buyers generally use to pay for a good or service
Term
barter
Definition
the exchange of one good or service for another good or service
Term
money
Definition
any item that is generally acceptable to sellers in exchange for goods and services
Term
consumer sovereignty
Definition
determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy
Term
dollar votes
Definition
the votes that consumers and entrepreneurs cast for the production of consumer and captial goods, respectively, when they purchase them in product and resource markets
Term
guiding function of prices
Definition
the ability of prices to bring about changes in the quantities of productas and resources demanded and supplied
Term
technological advance
Definition
new and better goods and services, and new and better ways of producing or distributing them
Term
creative destruction
Definition
the hypothesis that the creation of new products and production methods simultaneously destroys the market power of firms that are wedded to existing products and older ways of doing business
Term
invisible hand
Definition
the tendency of firms and resource suppliers seeking to further their own self-interests in competitive markets to also promote th einterest of society as a whole
Term
circular flow diagram
Definition
the flow of resources from households to firms and of product from firsm to households. These flows are accompanied by revers flows of money from firms to households and from households to firms.
Term
household
Definition
one or more persons occupying a housing unit, who buy businesses' goods and services in the product market using income derviced from selling resources in the factor market
Term
businesses
Definition
economic entities (firms) that purchase factors of production and provide goods and services to the economy
Term
sole proprietorship
Definition
an unincorporated firm owned and operated by two or more people
Term
partnership
Definition
an unincorporated firm owned and operated by two or more people
Term
corporation
Definition
a legal entity chartered by the federal or provincial government that operates as a body distinct and separate from the individuals who own it
Term
product market
Definition
a market in which products are sold by firms and bough tby households
Term
factor market
Definition
a market in which households sell and firms buy factors of production
Term
demand
Definition
a schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time
Term
law of demand
Definition
other things equal, as price falls the quantity demanded rises, and vice versa
Term
diminishing marginal utility
Definition
as a consumer increases the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases
Term
substitution effect
Definition
a change in the price of a product changes the relative expensiveness of that good and hence changes the willingness of consumers to buy it rather than other goods
Term
income effect
Definition
a change in the price of a product changes a consumer's real income (purchasing power) and thus the quantity of the product purchased
Term
demand curve
Definition
a curve illustrating the inverse (negative) relationship between the quantity demanded of a good or service and its price, other things equal
Term
determinants of demand
Definition
factors other than price that determine the quantities demanded of a good or service
Term
normal goods
Definition
good or services whose consumption rises when income increases and falls when income decreases, price remaining constant
Term
inferior goods
Definition
goods or services whose consumption falls when income increases and rises when income decreases, price remaining constant
Term
substitute goods
Definition
products or services that can be used in place of each other
Term
complementary goods
Definition
products and services that are used together
Term
change in demand
Definition
a change in the quantity demanded of a good or service at every price; a shift of the entire demand curve to the right (an increase in demand) or to the left (a decrease in demand)
Term
change in quantitiy demanded
Definition
a movement from one point to another on a fixed demand curve
Term
supply
Definition
a schedule or curve that shows the amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period
Term
law of supply
Definition
the principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease
Term
supply curve
Definition
a curve illustrating the positive (direct) relationship between the quantity supplied of a good or service and its price, other things equal
Term
determinants of supply
Definition
causes other than price that determine the quantities supplied of a good or service
Term
change in supply
Definition
a change in the quantity supplied of a good or service at every price; a shift of the supply curve to the left or right
Term
change in quantity supplied
Definition
a movement from one point to another on a fixed supply curve
Term
equilibrium price
Definition
the price in a competitive market at which the quantity demanded and hte quantity supplied are equal
Term
equilibrium quantity
Definition
the quantity demanded and supplied at the equilibrium price in a competitive market
Term
surplus
Definition
the amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price
Term
shortage
Definition
the amount by which the quantity demanded of a product exceeds the quantity supplied at a specific (below-equilibrium) price
Term
rationing function of prices
Definition
the ability of the competitive forces of supply and deamnd to establish a price at which selling and buying decisions are consistent
Term
production efficiency
Definition
the production of a good in the least costly way
Term
allocative efficiency
Definition
the distribution of resources among firms and industries to produce the goods most wanted by society
Term
price ceiling
Definition
a legally established maximum price for a good or service
Term
price elastcity of demand
Definition
a measure of the responsiveness of buyers to a change in the price of a product or resource
Term
midpoint formula
Definition
a method for calculating price elasticity of demand or price elasticity of supply that averages the two prices and two quantities as the reference points for competing percentages
Term
elastic demand
Definition
product or resource demand with a price elasticity coefficient that is greater than 1
Term
inelastic demand
Definition
product or resource demand with a price elasticity coefficient that is less than 1
Term
unit elasticity
Definition
demand or supply with a price elasticity coefficient that is equal to 1
Term
perfectly inelastic demand
Definition
quantity demanded does not respond to a change in price
Term
perfectly elastic demand
Definition
quantity demanded can be any amount at a particular price
Term
total revenue
Definition
the total amount a seller receives from the sale of a product in a particular time period
Term
total revenue test
Definition
a test to determine elasticity of demand between any two prices, by noting what happens to total revenue when price changes
Term
substitutability
Definition
the larger the number of substitute goods that are available, the greater the price elasticity of demand
Term
luxuries vs necessities
Definition
the more a good is considered a luxury rather than a necessity, the greater is the price elasticity of demand
Term
time elasticity
Definition
product demand is more elastic the longer the period under consideration. comsuners often need time to adjust to changes in prices
Term
price elasticity of supply
Definition
the ratio of the percentage change in quantity supplied of a product to the percentage change in its price
Term
market period
Definition
a period in which producers are unable to change the quantity of a product they produce in response to a change in its price
Term
short run
Definition
a period of time in which producers are able to change the quantities of some but not all of the resources they employ
Term
long run
Definition
a period of time long enough to enable producers to change the quantities of all the resources they employ
Term
cross elasticity of demand
Definition
the ratio of the percentage change in quantity demanded of one good to the percentage change in price of some other good
Term
income elasticity of demand
Definition
measures the responsiveness of consumer purchases to income changes
Term
demand elasticity and tax
Definition
if demand is elastic in the relevant price range, price rises modestly. the producer bears most of the tax burden. if demand is inelastic, the price to the buyer will increas substantially and most of the tax will be shifted to consumers
Term
supply elasticity and incidence of tax
Definition
with an elastic supply, the sales tax results in a large price increase and the tax is therefore paid mainly by consumers. if supply is inelastic, the price rise is small and sellers will have to bear most of the tax.
Term
market failures
Definition
when markets fail to function properly, whether by overproducing, underproducing, or failing to produce economically desireable goods
Term
demand-side market failure
Definition
when demand curves fail to reflect consumers' full willingness to pay for goods or services
Term
supply-side market failure
Definition
when supply curves fail to reflect the full cost of producing a good or service
Term
consumer surplus
Definition
the difference between the maximum price consumers are willing to pay for a product and the actual price
Term
producer surplus
Definition
the difference between the actual price producers receive for a product and the minimum acceptable price
Term
productive efficiency
Definition
the production of a good in the least costly way
Term
allocative efficiency
Definition
the approtionment of resources among firms and industries to produce the goods most wanted by society
Term
total surplus
Definition
the surplus created by combining the consumer and producer surpluses
Term
efficiency (deadweight) losses
Definition
reductions of combined consumer and producer sruplus associated with underproduction or overproduction of a product
Term
private goods
Definition
goods or services that are individually consumed & that can be profitabley provided by privately owned firms because they can exclude nonpayers from receiving the benefits
Term
rivalry
Definition
a situation in which when one person buys & consumes a product, it is not available for another person to buy & consume
Term
excludability
Definition
a situation in which sellers can keep epople who don't pay for a product from obtaining its benefits
Term
public goods
Definition
goods or services that can be simultaneously consumed by everyone, and from which no one can be excluded, even if they don't pay for them
Term
nonrivalry
Definition
when the consumption of a good by one person doesn't preclude consumption of the good by others
Term
non-excludability
Definition
when there is no effective way of excluding indivuals from the benefit of the good once it has been created
Term
free-rider problem
Definition
the inability of potential providers of an economically desirable but indivisible good or service to obtain payment from those who benefit, because the exclusion prinicple is not applicable
Term
cost-benefit analysis
Definition
comparing the marginal costs with the marginal benefits to decide whether to emply more or less resources in that project
Term
marginal cost = marginal benefit rule
Definition
for a government project, marginal benefit should equal marginal cost to produce maximum benefit to society
Term
quasi-public goods
Definition
goods provided by the government that fit the economist's definition of a public good but can be produced in such a way that exclusion would be possible
Term
externatlity
Definition
benefits or costs from production or consumption accruing without compensation to nonbuyers & nonsellers of the product
Term
negative externality
Definition
a cost imposed without compensation on third parties by the production or consumption of sellers or buyers (e.g. a manufacturer dumps toxic chemicals into a river, killing the fish sought by sport fishers). An external cost or spillover cost.
Term
positive externality
Definition
a benefit obtained without compensation by third parties from the production or consumption of sellers or buyers (e.g. a beekeeper benefits when a neighboring farmer plants clover). An external benefit or spillover benefit.
Term
Coase theorem
Definition
under the right conditions, private individuals can often negotiate their own mutually agreeable solutions to externality problems through individual bargaining with no need of government intervention
Term
optimal reduction of an externality
Definition
the point at which society's marginal cost and marginal benefit of reducing that externality are equal
Term
law of diminishing marginal utility
Definition
as a consumer increases consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases
Term
total utility
Definition
the total amount of satisfaction derived from the consumption of a single product or a combination of products
Term
marginal utility
Definition
the extra utility a consumer obtains from the consumption of one additional unit of a product
Term
rational behavior
Definition
human behavior that seeks to maximize total utility
Term
budget constraint
Definition
the limit that a consumer's income (and the prices that must be paid for goods and services) imposes on the ability of that consumer to obtain goods and services
Term
utility-maximzing rule
Definition
to obtain the greatest utility, the consumer should allocate money income so that the last dollar spent on each good or service yields the same marginal utility
Term
income effect
Definition
a change in the price of a product changes a consumer's real income (purchasing power) and thus the quantity of the product purchased
Term
substitution effect
Definition
a change in the price of a product changes the relative expensiveness of that product and hence changes the consumer's willingness to buy it rather than other goods
Term
behavioral economics
Definition
the branch of economics that combines insights from economcis, psychology, and neuroscience to better understand those situations in which acutal choice behavior deviates from the predictions made by earlier theories
Term
status quo
Definition
the current situation from which gains and losses are calculated
Term
loss averse
Definition
a characteristic that makes losses feel more intense than the pleasure generated by gains
Term
prospect theory
Definition
an explanation of how consumers plan for and deal with life's ups and downs, as well as of why they often appear narrow minded and fail to "see the big picture."
Term
framing effects
Definition
changes in people's preferences that are caused by new information that alters the frame used to define whether situations are gains or losses
Term
anchoring
Definition
the idea that irrelevant information can unconsciously influence people's feelings about the status quo
Term
mental accounting
Definition
the idea that people sometimes look at consumption options in isolation, thereby irrationally failing to look at all of their options simultaneously
Term
endowment effect
Definition
the tendency that people have to put a higher valuation on anything that they currently possess (are endowed with) than on identical items that they do not.
Term
explicit costs
Definition
the monetary payments a firm must make to an outsider to obtain a resource
Term
implicit costs
Definition
the monetary income a firm sacrifices when it uses a resource it owns rather than supplying the resource in the market' equals what the resource could have earned in the best-paying alternative employment (including a normal profit)
Term
accounting profit
Definition
the total revenue of a firm less its explicit costs
Term
normal profit
Definition
the payment made by a firm to obtain and retain entrepreneurial ability
Term
economic profit
Definition
a firm's total revenue less its economic costs (both explicit costs and implicit costs)
Term
short run
Definition
a period of time in which producers are able to change the quantities of some but not all of the resources they employ
Term
long run
Definition
a period of time long enough to enable producers to change the quantities of all the resources they employ
Term
total product (TP)
Definition
the total output (total quantity) of a particular good or service produced by a firm
Term
marginal product (MP)
Definition

the extra output associated with adding a unit of a variable factor to the production process

 

marginal product = change in total product/change in labor input

Term
average product (AP)
Definition

also called labor productivity, is output per unit of labor input

 

average product = total product/units of labor

Term
law of diminishing returns
Definition
as successive increments of a variable factor are added to a fixed factor, the marginal product of the variable factor will eventually decrease
Term
fixed costs
Definition
costs that in total don't change when the firm changes its output
Term
variable costs
Definition
costs that increase or decrease with a firm's output
Term
total cost
Definition

the sum of fixed cost and variable cost

 

TC = TFC + TVC

Term
average cost
Definition
average fixed cost + average variable cost = average total cost
Term
average fixed cost (afc)
Definition

a firm's total fixed cost divided by output

 

AFC = TFC (total fixed costs)/Q (quantity)

 

must decline as output increases/spreading of overhead

Term
average variable cost (avc)
Definition

a firm's total variable cost divided by output

 

AVC = TVC (total variable cost)/Q (quantity)

 

reflects the law of diminishing returns

Term
average total cost (ATC)
Definition

a firm's total costs divided by output

 

Average total costs = Total costs/Q or

 

Average total costs = Total fixed Costs/Q + Total Variable Costs/Q or

 

Average total costs = Average fixed costs + Average Variable Costs

Term
marginal cost
Definition

the additional cost of producing one more unit of output

 

MC = change in TC/ change in Q

 

total cost of second unit - total cost of first unit

Term
economies of scale
Definition
reductions in the average total cost of producing a product as the firm increases plant size (output) in the long run.
Term
diseconomies of scale
Definition
increases in the average total cost of producing a product as the firm increases plant size (output) in the long run
Term
constant returns to scale
Definition
the range of output between the points where economies of scale end and diseconomies of scale begin
Term
minimum efficient scale (MES)
Definition
the lowest level of output at which a firm can minimize long-run average costs
Term
natural monopoly
Definition
an industry in which economies of scale are so great that a single firm can produce the product at a lower average total cost than if more than one firm produced the product
Term
perfect competition
Definition
a market structure in which very large number of firms produce a standardized product
Term
monopoly
Definition
a market structure in which one firm is the sole seller of a product or service
Term
monopolistic competition
Definition
a market structure in which a relatively large number of sellers produce differentiated products
Term
imperfect competition
Definition
the market models of monopoly, monopolistic competition, and oligopoly considered as a group
Term
characteristics of perfect competition
Definition
very large numbers, standardized product, price-takers, easy entry and exit
Term
price-taker
Definition
a firm in a purely competitive market that can't change market price, but can only adjust to it
Term
average revenue
Definition
total revenue from the sale of a product divided by the quantity of the product sold
Term
total revenue
Definition
the total number of dollars received by a firm from the sale of a product
Term
marginal revenue
Definition
the change in total revnue that results from selling one more unit of a firm's product
Term
break even point
Definition
an output at which a firm makes a normal profit but not an economic profit
Term
MR=MC rule
Definition
  • a method of determining the total output at which economic profit is at a maximum (or losses are at a minimum)
  • MR & MC will be precisely equal at a fractional level of output. The firm should produce the last complete unit of output for which MR exceeds MC
  • The rule only applies if producing is preferable to shutting down
  • The rule is an accurate guide to profit maximation for all firms
  • Under perfect competition P can be substituted for MR, P=MC
Term
shutdown case
Definition
the circumstance in which a firm would experience a loss greater than its total fixed cost if it were to produce any output greater than zero; alternatively, a situation in which a firm would cease to operate when the price is less than its average variable cost
Term
short-run supply curve
Definition
a curve that shows the quantities of the product a firm in a purely competitive industry will offer to sell at various prices in the short run
Term
long-run supply curve
Definition
a curve that shows the prices at which a purely competitive industry will make various quantitiesof a product available in the long run
Term
constant-cost industry
Definition
an industry in which the entry of new firms has no effect on resource prices and thus no effect on production costs
Term
increasing-cost industry
Definition
an industry in which the entry of new firms raises resource prices and thus increases production costs
Term
decreasing-cost industry
Definition
an industry in which the entry o ffirms lowers resource prices and thus decreases production costs
Term
productive efficiency
Definition
producing a good in the least costly way
Term
allocative efficiency
Definition
apportioning resources among firms & industries to produce the goods most wanted by society
Term
consumer surplus
Definition
the difference between the maximum price consumers are willing to pay and the actual price
Term
producer surplus
Definition
the difference between the actual price producers are willing to accept and the minimum acceptable price
Term
creative destruction
Definition
the hypothesis that the creation of new products and production methodds destroys the market power of firms that are wedded to existing products and older ways of doing business
Term
barriers to entry
Definition

anything artifically prevents the entry of firms into an industry

 

Term
simultaneous consumption
Definition
a product's ability to satisfy a large number of consumers at the same time
Term
network effects
Definition
increases in the value of a product to each user, including existing users, as the total number of users rises
Term
x-inefficiency
Definition
the production of output, whatever its level, at higher average (and total) cost than is necessary
Term
rent-seeking behavior
Definition
the actions by persons, firms or unions to gain special benefits from government at taxpayers' or someone else's expense
Term
price discrimination
Definition
selling a product to different buyers at different prices when the price differences are not justified by differences in cost
Term
socially optimal price
Definition
the price of a product that results in the most efficient allocation of an economy's resources
Term
fair-return price
Definition
the price of a product that enables its producer to obtain a normal profit & that is equal to the average cost of producing it
Term
deadweight loss
Definition
the loss of consumer surplus & producer surplus when output is either above or below its efficient level
Term
monopolistic competition
Definition
a market structure in which a relatively large number of sellers produce differentiated products
Term
product differentiation
Definition
a strategy in which one firm's product is distinguished from competing products by means of its design, realted services, quality, location, or other attribute (except price).
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