Econ Study guide

Econ Study guide - Indiffernce curve- curve that shows all...

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Indiffernce curve - curve that shows all combinations with the same satisfaction Marginal rate of substitution- what and how many goods your willing to give up for the addition of another good Law of marginal dimishing of substitution- as a good is given up, you become more and more less likely to keep giving that good up Indifference map - graph that shows different tastes for different utilities Budget line - shows your budget constraint (straight line of compared with two items) Explicit Costs- Costs for resources etc Implicit Costs- Costs for everything else, such as space and tools etc Economic Profit- A firms total revenue minus its explicit and implicit costs Normal Profit- The accounting profit earned when all resources earn their opportunity cost Variuble Resource – any resource that can be varied in the short run to increase or decrese production Fixed Resource- Any resource that cannot be varied in the short run Short Run- A period during which at least one of a firms resources is fixed
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Econ Study guide - Indiffernce curve- curve that shows all...

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