Term
In the short run if marginal product is at its maximum then... 

Definition
Marginal cost is at its minimum 


Term
If 40 units are sold at a price of $40 and 60 units are sold at a price of $20, then the elasticity of demand calculated using the midpoint formula is... 

Definition


Term
When there are a few number of substitutes available for a good, demand tends to be... 

Definition


Term
If a firm doubles all its inputs in the long run and it finds its average cost of production has decreased, then it has... 

Definition


Term
If the crossprice elasticity of demand for goods A and B is zero, this means the two goods are... 

Definition


Term
If a firm raised its price and found total revenue rose, then the demand for its product is... 

Definition


Term

Definition
Price per unit times quantity sold 


Term
A perfectly elastic demand curve is... 

Definition


Term
If, as the industry expands, a competitive industry can supply larger quantities at a lower longrun equilibrium price, it is... 

Definition
A decreasingcost industry 


Term
If another worker adds nine units of output to a group of workers who had an average product of seven units, then the average product of labor... 

Definition


Term
Crossprice elasticity of demand is calculated as... 

Definition
Percentage change in quantity demanded of one good divided by percentage change in price of a different good 


Term
If 20 units are sold at a price of $50 and 30 units are sold at a price of $40, then the elasticity of demand calculated using the midpoint formula is... 

Definition


Term
Economic cost of production differ from those in accounting in that... 

Definition
Economics adds the opportunity cost for a firm using its own resources 


Term
When a firm changes its price, the change in total revenue... 

Definition
Depends on the elasticity of demand value and the direction of the price change 


Term
When a firm changes its price, the change in total revenue... 

Definition
Depends on the elasticity of demand value and the direction of the price change 


Term
A firm knows when a technology it has adopted has been successful... 

Definition
When is can produce more output using the same inputs 


Term
Price inelastic supply occurs whenever the elasticity of supply value is... 

Definition
Positive and less than one 


Term

Definition
Is more elastic in a long period of time than it is in a short period of time 


Term
When the average total cost is $16, the level of total cost is $800, then the number of units the firm is producing is.... 

Definition


Term
A perfectly competitive firm breaks even at a price... 

Definition
Equal to minimum average total cost 


Term
A very large number of small sellers who sell identical products implies... 

Definition
The inability of one seller to influence price 


Term
If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could... 

Definition
Change price a little bit and observe what happens to total revenue 


Term
Both buyers and sellers are price takers in a perfectly competitive market because... 

Definition
Each buyer and seller is too small relative to others to independently affect the market price 


Term
If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is... 

Definition


Term
In the long run, a perfectly competitive market will... 

Definition
Supply whatever amount consumers demand at a price determined by the minimum point on the typical firms' average total cost curve 


Term
An individual seller in perfect competition will not sell at a price higher than the market price because... 

Definition
Quantity demanded would be zero, the seller would not be able to sell anything, and buyers would buy from other sellers 


Term
Both individual buyers and sellers in perfect competition... 

Definition
Have to take the market price as given 


Term
The price elasticity of demand is equal to... 

Definition
The percentage change in quantity demanded divided by the percentage change in price 


Term
If all we know is all workers' marginal product, then total and average product can be found by... 

Definition
Summing the marginal values to find the total and dividing it by the number of workers to get the average 

