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| an organization that uses resources to produce goods and services that are sold to consumers, firms, or the government. |
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| the behavior of a worker that is putting forth less than the agreed-to effort |
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| a business that is owned by one individual who makes all business decisions, receives all the profit or losses, and is legally responsible for debts of the firm |
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| a business owned by two or more co-owners, called partners, who share profits and are legally responsible for debts |
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| a person who owns shares of stock in a corporation. basically the owners of the corporation. |
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| a legal entity that can conduct business in its own name in the same way that an individual does. |
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| anything of value to which the firm has legal claim |
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| a condition in which an owner of a business firm can lose only the amount he or she has invested |
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| an important decision-making group in a corporation. It decides corporate policies and goals, among other things. |
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| a contract by which a firm lets a person or group use its name and sell its goods in exchange for certain payments and requirements |
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| the entity that offers a franchise |
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| the person or group that buys a franchise |
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| which two firms have unlimited liability? |
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Definition
| sole proprietorships and partnerships |
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| businesses have ethical and social responsibilities, treat employees well |
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| no using government to stifle competition, earn as much as possible by selling the public what it wants to buy. |
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| a cost that doesn't change regardless of the fluctuation in quantity |
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| a cost that fluctuates along with the quantity produced |
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Definition
| the sum of fixed cost and variable cost |
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| the total cost divided by the quantity of output |
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Definition
| the cost of producing one additional good, found by dividing the change in total cost by the change in quantity |
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Definition
| the revenue from selling an additional unit of a good; the change in total revenue that results from selling an additional unit of output |
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| law of diminishing marginal returns |
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Definition
| a law that states that if additional units of one resource are added to another resource in fixed supply, eventually the additional output will decrease |
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Definition
| the setting in which a seller finds itself, defined by characteristics such as number of sellers, product produced and sold, how easy/difficult it is for new firms to enter the market |
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| perfectly competitive market |
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Definition
| 1) many buyers & sellers, 2) identical goods being sold, 3)all relevant information about buying/selling activities is available to buyers/sellers, and 4) easy entry into/out of the market |
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Definition
| a seller that can sell all its output at the equilibrium price but none at another price |
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| 1) a single seller, 2) a product with no close substitutes, and 3) extremely high entry barriers |
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| anything prohibiting a firm from entering a market |
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| a seller that can sell some of its output at various prices |
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Definition
| a right granted to a firm by government that permits the firm to provide a particular good or service and excludes all others from doing so |
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| a firm with such a low average total cost that only it can survive in the market |
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| legislation passed for the stated purpose of controlling monopoly power and preserving and promoting competition |
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| monopolistic competitive market |
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Definition
| 1) many buyers/sellers, 2) production/sale of slightly differentiated products, and 3)easy entry/exit from market |
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Definition
| 1) few sellers, 2)production/sale of identical or slightly differentiated products, and 3) significant barriers to entry |
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Definition
| an agreement that specifies how the firms that entered into the agreement will act in a coordinated way to reduce the competition among them |
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| practice by which a seller charges different prices to different buyers for the product it sells when the price differences do not reflect cost differences |
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| a demand that is the result of some other demand |
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| a federal law that specifies the lowest hourly wage rate that can be paid to workers |
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| an organization that seeks to increase wages and improve working conditions |
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| an organization that hires only union workers |
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| made closed shops illegal and gave states the right to pass right-to-work laws, which prohibit employers from establishing union membership as a condition of employment |
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| an organization that requires employees to join the union within a certain time period after being hired |
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| a work stoppage called by union members to put pressure on an employer |
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| a state law that prohibits the practice of requiring employees to join a union in order to work |
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