Equilibriu1 - level to find aggregate demand Household -...

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Equilibrium Terms Equilibrium Quantity - Amount of goods or services sold at the equilibrium price. Because supply is equal to demand at this point, there is no surplus or shortage. Fixed Costs - Costs which vary with quantity produced that a firm has to pay in order to produce and sell its goods. Firm - Unit of sellers in microeconomics. Because it is seen as one selling unit in microeconomics, a firm will make coordinated efforts to maximize its profit through sales of its goods and services. The combined actions and preferences of all firms in a market will determine the appearance and behavior of the supply curve. Goods and Services - Products or work that are bought and sold. In a market economy, competition among buyers and sellers sets the market equilibrium, determining the price and the quantity sold. Horizontal addition - The process of adding together all quantities demanded at each price
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Unformatted text preview: level to find aggregate demand Household - Unit of buyers in microeconomics. Because it is seen as one buying unit in microeconomics, a household will make coordinated efforts to maximize its utility through its choices of goods and services. The combined actions and preferences of all households in a market will determine the appearance and behavior of the demand curve. Long Run - The distant future, for which buyers and sellers make "permanent" decisions, such as exiting the market or permanently decreasing consumption. Marginal Cost - Additional cost incurred from each additional unit of goods produced. Marginal Revenue - Additional income derived from each additional unit of goods sold. Marginal Utility - Additional utility derived from each additional unit of goods acquired. Market - A large group of buyers and sellers who are buying and selling the same good or service....
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