Term
A consumer who achieves a corner equilibrium does what?
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Definition
Maximizes utility by consuming zero quantity of one of the goods.
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Term
If average total cost is increasing then what?
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Definition
Marginal Cost, must be greater than average total cost
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Term
A firm's average fixed cost curve shows what?
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Definition
Declining average fixed costs as output increases
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Term
The vertical distance between the total costs and total variable cost curves is what?
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Definition
Equal to Total Fixed Costs
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Term
The supply of a good is most elastic over the time interval called?
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Definition
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Term
What can be concluded if two combinations of goods lie on a consumer's budget line. We may conclude with certainty what?
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Definition
The goods are equally affordable
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Term
Slope*(Price/Quantity)=
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Definition
Algebraically Calculated Elasticity of Demand
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Term
What does Total Income Equal?
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Definition
(Price*Quantity)-Total Cost
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