Chapter 4_Key Terms 2025/2026 Exam
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Bilateral monopoly - 🧠 ANSWER ✔✔When there is monopoly on the seller's
side of the market and monopsony on the buyer's side.
Monopsony - 🧠 ANSWER ✔✔A situation in a market where there is only
one buyer.
Monopoly - 🧠 ANSWER ✔✔An entity that is the sole supplier in a market
and has total control of the supply of the goods or services produced.
Market failure - 🧠 ANSWER ✔✔A situation in which a market fails to
produce the socially optimal level of output.
, Technical efficiency - 🧠 ANSWER ✔✔Efficiency in production, or cost
efficiency.
Allocative efficiency - 🧠 ANSWER ✔✔The situation in which producers
make the goods and services that consumers desire. For every item, the
marginal cost of production is less than or equal to the marginal benefit
received by consumers.
Case fatality rate (CFR) - 🧠 ANSWER ✔✔The number of deaths from a
particular disease relative to the number of people diagnosed with the
disease.
Consumer surplus - 🧠 ANSWER ✔✔A measure of consumer welfare
calculated by the difference between the price that consumers are willing to
pay and the price they actually pay.
Producer surplus - 🧠 ANSWER ✔✔The total welfare a producer receives by
producing and selling a good, measured by the difference between the net
price they receive less the minimum price they are willing to accept
(typically the cost of production).
Optimal output level - 🧠 ANSWER ✔✔A market equilibrium in which the
marginal benefit received from every unit of output is greater than or equal
Questions and Verified Answers |
Already Graded A+
Bilateral monopoly - 🧠 ANSWER ✔✔When there is monopoly on the seller's
side of the market and monopsony on the buyer's side.
Monopsony - 🧠 ANSWER ✔✔A situation in a market where there is only
one buyer.
Monopoly - 🧠 ANSWER ✔✔An entity that is the sole supplier in a market
and has total control of the supply of the goods or services produced.
Market failure - 🧠 ANSWER ✔✔A situation in which a market fails to
produce the socially optimal level of output.
, Technical efficiency - 🧠 ANSWER ✔✔Efficiency in production, or cost
efficiency.
Allocative efficiency - 🧠 ANSWER ✔✔The situation in which producers
make the goods and services that consumers desire. For every item, the
marginal cost of production is less than or equal to the marginal benefit
received by consumers.
Case fatality rate (CFR) - 🧠 ANSWER ✔✔The number of deaths from a
particular disease relative to the number of people diagnosed with the
disease.
Consumer surplus - 🧠 ANSWER ✔✔A measure of consumer welfare
calculated by the difference between the price that consumers are willing to
pay and the price they actually pay.
Producer surplus - 🧠 ANSWER ✔✔The total welfare a producer receives by
producing and selling a good, measured by the difference between the net
price they receive less the minimum price they are willing to accept
(typically the cost of production).
Optimal output level - 🧠 ANSWER ✔✔A market equilibrium in which the
marginal benefit received from every unit of output is greater than or equal
