ECON 2010 Final Review Part 1

Economic growth happens because of technological advances and capital accumulation

LRAC curve shows the relationship between ATC and AFC

Why are firms price takers in perfect competition markets?

The tools that are used in production of goods and capital are called labour

What is calculated as Total Revenue - Total Cost

Profit is maximized when MR=MC

Marginal cost happens when a worker has less capital to work with

If a firm is making economic loss, they should decide between

When a person performs an activity at a lower opportunity cost then that person has a

Quantity demanded changes because something other than price

Opportunity cost is the lowest valued alternative given up to obtain something else

Which of the following are considered as land?

Points inside the PPF are attainable but inefficient because resources are

Monopolies set their profit maximising points when MR>MC

By price discriminating, a monopoly capturesconsumer surplus and converts it into

Monoploes produce goods that have subsitutes

A good that can be used in place of another good.

___________ is when choices are made for self benefit

Goods and services are produced using

Perfect competition is a market where 

An increase in the suppliers of a good causes greater supply of the good

Labour includes both physical and mental work effort

Points inside the PPF are

Increase in marginal returns happens due to

What are the barriers to entry?

A firms goals is to maximize its economic profit.

Conditions for price discrimination include

Equilibrium in a market happens when price is

_____________ is a good that can be used in place of another good