Behavioral Economics
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the study of situations in which people make choices that do not appear to
be economically rational
Diseconomies of scale apply only in the _______ run, when the firm is free to vary all it's
inputs, can adopt new technology, and can vary the amount of machinery it uses and
the size of its facility/
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long
,P>ATC
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the firm makes a profit
Marginal Revenue equation
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(Change in total revenue) / ( Change in quantity)
Farmer Parker
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is a price taker because he is selling wheat in a perfectly competitive
market.
Assume there are only two inputs: Labor and Capital
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, Short run : at least one input is fixed
labor - variable
capital - fixed
Long run: all inputs variable
Labor and Capital - variable
Key determinants of the price elasticity of demand
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availability of close substitutes
Passage of time
Luxuries versus necessities
definition of market
Share of good in the consumer's budget
Economic costs include
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both accounting costs and implicit costs
When price ________ consumer power________. The income effect causes the quantity
demanded to ______. The substitution effect causes the quantity demanded to ________.
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the study of situations in which people make choices that do not appear to
be economically rational
Diseconomies of scale apply only in the _______ run, when the firm is free to vary all it's
inputs, can adopt new technology, and can vary the amount of machinery it uses and
the size of its facility/
Give this one a try later!
long
,P>ATC
Give this one a try later!
the firm makes a profit
Marginal Revenue equation
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(Change in total revenue) / ( Change in quantity)
Farmer Parker
Give this one a try later!
is a price taker because he is selling wheat in a perfectly competitive
market.
Assume there are only two inputs: Labor and Capital
Give this one a try later!
, Short run : at least one input is fixed
labor - variable
capital - fixed
Long run: all inputs variable
Labor and Capital - variable
Key determinants of the price elasticity of demand
Give this one a try later!
availability of close substitutes
Passage of time
Luxuries versus necessities
definition of market
Share of good in the consumer's budget
Economic costs include
Give this one a try later!
both accounting costs and implicit costs
When price ________ consumer power________. The income effect causes the quantity
demanded to ______. The substitution effect causes the quantity demanded to ________.
Give this one a try later!
