1
Q
Efficient scale
A
The quantity at which ATC is minimum.
2
Q
Excess capacity
A
Occurs when a firm produces below its efficient scale.
3
Q
Markup
A
The amount by which the price exceeds marginal cost.
4
Q
Monopolistic competition
A
A market structure in which: a large number of firms compete; each firm produces a differentiated product; firms compete on product price, quality, and marketing; firms are free to enter and exit.
5
Q
Product differentiation
A
Making a product that is slightly different to those of competing firms.
6
Q
Signal
A
An action taken by an informed person/firm to send a message to uninformed people.
Economics
flashcards
Decks in class (18)
# Cards
-
Monopolistic competition15
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Oligopoly16
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Public choices and public goods39
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Economics of the environment25
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Measuring GDP and economic growth37
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Monitoring jobs and inflation2
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Key terms - Aggregate supply/demand19
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Key terms - Economic growth7
-
Key terms - Monitoring jobs and inflation21
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Key terms - Measuring GDP and economic growth14
-
Key terms - Economics of the environment11
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Key terms - Public choices and public goods19
-
Key terms - Oligopoly16
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Key terms - Monopolistic competition6
-
Key terms - Monopoly12
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Key terms - Perfect competition6
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Key terms - Output and costs16
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Key terms - Organising production14
