A

Abatement,

See Pollution - abatement

Agricultural market,

See Price support - agriculture

Demand & Supply - Equilibrium - 6

Perfect Competition - Introduction - 3-5

Current Events - Drug Bust

Air pollution,

See Pollution - air

All else being equal,

See Ceteris paribus

Allocative efficiency. See also Optimal provision

Factor Markets - Market Power - 2, 10

Public Economics - Introduction - 2

Public Economics - Optimal Provision - 1

Externalities - Industry Structure - 1-6

Externalities - Pollution Taxes - 3-5

Antitrust law,

Elasticity - Revenue - 9

Monopoly - Introduction - 4,5

Oligopoly - Repeated Games - 5, 10

Arc elasticity,

See Elasticity - arc

Asia,

Current Events - Asian Crisis

Average fixed cost (AFC)

• computation of,
  Production Costs - Cost Computation - 2

  shown graphically,

  Production Costs - Cost Areas - 3

  curve,

  Production Costs - Cost Curves - 1

Average fixed costs (AFC),

Production Costs - Mutiple Choice Questions - 12

Average product (AP)

• computation of,
  Production Costs- Marginal Product - 1

  curve,

  Production Costs- Marginal Product - 2

  and marginal product,

  Production Costs- Marginal Product - 2

Average revenue (AR)

• computation of,
  Perfect Competition - Firm Demand - 3
  Perfect Competition - Mutiple Choice Questions - 14

  curve,

  Perfect Competition - Firm Demand - 3

Average total cost (ATC)

Production Costs - Mutiple Choice Questions - 4,12,14,17

• computation of,
  Production Costs - Cost Computation - 2

  shown graphically,

  Production Costs - Cost Areas - 2

  curve,

  Production Costs - Cost Curves - 7

  long-run average total cost,

  See Long-run average cost (LRAC)

  minimized (minimum of ATC),

  Production Costs - Cost Shifts - 2

  Perfect Competition - Demand Change - 7, 11

Average variable cost (AVC)

Production Costs - Mutiple Choice Questions - 3,4,7,17

• computation of,
  Production Costs - Cost Computation - 2

  shown graphically,

  Production Costs - Cost Areas - 1

  curve,

  Production Costs - Cost Curves - 5

B

Backward bending labor supply curve,

See Supply of labor curve - backward bending

Barriers to entry

• definition of,
  Perfect Competition - Introduction - 6

  for a monopolist,

  Monopoly - Introduction - 3

  Monopoly - Demand Change - 1

  Monopoly - Profit Maximization - 16

  Monopoly - Entry Barriers - 1-17

  for a monopolistic competitor,

  Monopolistic Competition - Entry Barriers - 1-9

  Monopolistic Competition - Mutiple Choice Questions - 7,11

  for an oligopolist,

  Oligopoly - Introduction - 2

  for a perfect competitor,

  Perfect Competition - Introduction - 6

  Perfect Competition - Equilibrium - 3

  Perfect Competition - Cost Change - 10

  See also Patents

Benefit-cost analysis,

See Cost-benefit analysis

Bonds,

Demand & Supply - Expectations - 2

Monopolistic Competition - Entry Barriers - 4

Budget constraint

• definition of,
  Consumer Choice - Introduction - 1

  examples of,

  Consumer Choice - Budget Constraints - 1-5

  Consumer Choice - Utility Maximization - 1-5

Budget line,

See Budget constraint

C

Capacity, excess

See Excess capacity

Capital,

See Factors of production - capital

Capital investment,

See Investment

Cartel,

Current Events - Energy Use

Ceteris paribus (all else being equal)

• definition of,
  Demand & Supply - Law of Demand - 1

  examples of,

  Demand & Supply - Law of Supply - 4

  Consumer Choice - Tax/Surplus - 6

  Externalities - Industry Structure - 6

Change in demand,

See Demand - change in demand

Change in quantity demanded,

See Quantity demanded - change in

Change in supply,

See Supply - change in supply

Change in quantity supplied,

See Quantity supplied - change in

Collusion,

Oligopoly - Mutiple Choice Questions - 7,13

Current Events - Productivity

• definition of,
  Oligopoly - Repeated Games - 2

  and game theory,

  Oligopoly - Repeated Games - 2-16

  and monopsonies,

  Factor Markets - Market Power - 5

  tacit collusion,

  Oligopoly - Repeated Games - 3

Competition,

See Imperfect competition

See Perfect competition

See Monopolistic competition

Competitive behavior,

See Perfect competition

Competitive markets,

See Perfect competition

Complementary goods (complements)

• definition of,
  Demand & Supply - Substitutes & Complements - 4

  and demand,

  Demand & Supply - Law of Demand - 2

  Demand & Supply - Substitutes & Complements - 4-6

  Demand & Supply - Mutiple Choice Questions - 3

  Perfect Competition - Demand Change- 2

  Public Goods - Optimal Provision - 2

  Factor Markets - Factor Prices - 4

  and elasticity (cross-price),

  Elasticity - Demand - Cross Price - 1-9

  Elasticity - Mutiple Choice Questions - 2,17

Constant returns to scale (CRS),

Production Costs - Long Run Costs - 7

Consumer behavior,

Factor Markets - Firm Hiring - 5

See also Consumer choice

See also Consumers' surplus

Consumer choice,

Consumer Choice - Introduction - 1

Current Events - Microsoft and DOJ

Consumers' surplus

• definition of,
  Consumer Choice - Consumers' Surplus - 2

  and excise tax,

  Consumer Choice - Tax-Surplus - 1-8

  shown graphically,

  Consumer Choice - Consumers' Surplus - 2-4

Consumption,

Consumer Choice - Introduction - 1

• of petroleum products,
  Current Events - Energy Use

Consumption bundle,

Consumer Choice - Preferences - 2

Cost (s)

• definition of,
  Introduction - Opportunity Costs - 2

  external costs,

  See Externalities

  fixed costs,

  See Fixed Costs

  forgone costs,

  Perfect Competition - Short Run - 6

  indirect costs,

  Introduction - Cost & Profit - 1

  Introduction - Opportunity Costs - 2

  long-run costs,

  See Long-run costs

  marginal cost,

  See Marginal cost

  opportunity cost,

  See Opportunity cost

  production costs,

  See Production Costs

  short-run costs,

  See Short-run costs

  social costs,

  See Social costs

  total costs,

  See Total Costs

  variable costs,

  See Variable costs

Cost-benefit analysis,

Externalities - Introduction - 1

Crime,

• and collusion
  Current Events - Productivity

  and prisoners' dilemma

  Oligopoly - Dilemmas - 3

Cross (price) elasticity of demand,

See Elasticity - cross price elasticity of demand

D

Deadweight loss,

Consumer Choice - Tax-Surplus - 6-8

Decision making, economic

Introduction - Micro - 4,5

Introduction - Cost & Profit - 4,6

See also Intangible aspect

Decreasing returns to scale (DRS),

Production Costs - Long Run Costs - 5, 6, 9

Perfect Competition - Long Run Supply - 7

Demand. See also Demand curve

• change in demand,
  Demand & Supply - Law of Demand - 3-4

  and complements,

  Demand & Supply - Substitutes & Complements - 4-6

  curve,

  See Demand curve

  definition of,

  Demand & Supply - Demand Introduction - 1

  desired quantity demanded,

  Demand & Supply - Demand Introduction - 1

  derived demand,

  See Factors of Production - Derived Demand

  demand equation,

  Demand & Supply - Schedule & Equations - 4

  Demand & Supply - Mutiple Choice Questions - 5

  elastic demand,

  See Elastic demand

  expectations,

  Demand & Supply - Law of Demand - 2

  Demand & Supply - Demand Expectations - 1

  Current Events - Oil Price Increases

  factor demand,

  See Factor demand

  industry demand,

  Perfect Competition - Firm Supply - 3

  inelastic demand,

  See Inelastic demand

  inverse relationship,

  Demand & Supply - Demand Introduction - 2

  Demand & Supply - Law of Demand - 2

  market demand,

  Production Costs - Long Run Costs - 9

  Perfect Competition - Firm Supply - 3

  Perfect Competition - Equilibrium - 5

  Monopoly - Profit Maximization - 1, 4, 5

  Factor Markets - Market Power - 1

  Public Goods - Demand for Public Goods - 1

  shift in demand,

  Demand & Supply - Law of Demand - 3-4

  and substitutes,

  Demand & Supply - Substitutes & Complements - 1-3

  and taxes,

  Consumer Choice - Tax-Surplus - 7

  Current Events - Cigarette Tax

Demand curve. See also Demand

• downward sloping,
  Demand & Supply - Demand Introduction - 3

  factor demand curve,

  See Factor demand curve

  graph of,

  Demand & Supply - Demand Introduction - 2

  kinked demand curve,

  Oligopoly - Kinked Demand - 2-5

  Oligopoly - Mutiple Choice Questions - 14,15

  movement along,

  Current Events - Drug Bust

Demand elasticity,

See Elastic demand

See Inelastic demand

See Price elasticity of demand

Demand schedule,

Demand & Supply - Schedule & Equations - 1

Demand and supply

• analysis,
  Demand & Supply - Schedule & Equations - 1
  Demand & Supply - Mutiple Choice Questions - 16

  equations,

  Demand & Supply - Schedule & Equations - 1

  schedule,

  Demand & Supply - Schedule & Equations - 3

Derived demand,

See Factors of Production - Derived Demand

Desired quantity demanded,

See Quantity demanded

Desired quantity supplied,

See Quantity supplied

Differentiated products,

Monopolistic Competition - Introduction - 1

Industry Policy - Industry-Efficiency - 1

Diminishing rate of technical substitution,

Factor Markets - Firm Hiring - 10

Diminishing returns,

See Law of diminishing returns

Diseconomies of scale,

See Decreasing returns to scale (DRS)

Dominant strategy,

See Game theory - dominant strategy

Dominated strategy,

See Game theory - dominated strategies

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