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| in economics, the additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service |
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| Law of diminishing marginal utility |
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| there is a decline in the marginal utility that person derives from consuming each additional unit of that product. |
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| attempting to control the market via manipulation instead of creating new wealth |
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| A pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the seller will charge each customer the maximum price that he or she is willing to pay. |
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| A pricing strategy that charges customers different prices for the same product or service. In pure price discrimination, the seller will charge each customer the maximum price that he or she is willing to pay. |
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| The use of irrelevant information as a reference for evaluating or estimating some unknown value or information. When anchoring, people base decisions or estimates on events or values known to them, even though these facts may have no bearing on the actual event or value. |
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| people value a good or service more once their property right to it has been established. |
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| the extra output that can be produced by using one more unit of the input |
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| In other words, an implicit cost is any cost that results from using an asset instead of renting, selling, or lending it |
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| The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for "economic value added" (EVA). |
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| Total cost is the sum of fixed cost and variable cost |
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| The increase in efficiency of production as the number of goods being produced increases |
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| are the forces that cause larger firms and governments to produce goods and services at increased per-unit costs. The concept is the opposite of economies of scale |
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| condition on the cost-technology of an industry whereby it is most efficient (involving the lowest long-run average cost) for production to be concentrated in a single firm |
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| are retrospective (past) costs that have already been incurred and cannot be recovered |
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| A public place where buyers and sellers make transactions, directly or via intermediaries. Also sometimes means the stock market. |
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| A situation in which a particular market is controlled by a small group of firms. |
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| An investor whose buying or selling transactions are assumed to have no effect on the market |
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| is the additional revenue that will be generated by increasing product sales by 1 unit |
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| principle that states that once all factors of production (land, labor, capital) are at maximum output and efficiency, producing more will cost more than average |
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| occurs when the economy is utilizing all of its resources efficiently, producing most output from least input |
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| are obstacles that make it difficult to enter a given market |
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| refers to the linked processes of the accumulation and annihilation of wealth under capitalism |
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| type of economic efficiency in which economy/producers produce only that type of goods and services which are more desirable in the society and also in high demand |
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