Term
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Definition
| a legal maximum on the pirice at which a good can be sold |
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Term
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Definition
| a legal minimum on the price at which a good can be sold |
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Term
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Definition
| the manner in which the burden of a tax is shared among participants in a market |
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Term
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Definition
| the maximum amount that a buyer will pay for a good |
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Term
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Definition
| the amount a seller is paid for a good minus the sellers cost of providing it |
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Term
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Definition
| the property of a resource allocation of maximizing the total surplus by all members of society |
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Term
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Definition
| the fairness of the distribution of well-being among the members of society |
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Term
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Definition
| the uncompensated impact of one person's actions on the well-being of a bystander |
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Term
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Definition
| the propostition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own |
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Term
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Definition
| the property of a good whereby a person can be prevented from using it |
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Term
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Definition
| the property of a good whereby one person's use diminishes other peoples use |
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Term
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Definition
| goods that are both excludable and rival in consumption |
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Term
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Definition
| goods that are neither excludable nor rival in consumption |
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Term
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Definition
| a person who receives the benefit of a good but avoids paying for it |
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Term
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Definition
| the amount a firm receives for the sale of its output |
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Term
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Definition
| the market calue of the inputs a firm uses in production (TC) |
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Term
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Definition
| total revenue minus total cost |
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Term
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Definition
| total revenue minus total cost, including both explicit and implicit costs |
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Term
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Definition
| total revenue minus total explicit cost |
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Term
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Definition
| the relationship between quantity of inputs used to make a good and the quantity of output of that good |
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Term
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Definition
| total cost divided by the quantity of output (ATC = TC/Q) |
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Term
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Definition
| fixed costs divided by the quantity of output (AFC = FC/Q) |
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Term
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Definition
| variable costs divided by the quantity of output (AVC = VC/Q) |
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Term
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Definition
| the increase in total cost that arised from an extra unit of production (MC = changeTC/ change Q) |
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Term
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Definition
| the quantity of output that minimizes average total cost |
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