Managerial Economics Quiz 2 Study Guide
A market is any arrangement through which buyers & sellers exchange goods &
1) Markets reduce transaction costs
2) Costs of making a transaction other than the price of the good or service
Managerial Economics Quiz 1 Review Guide Monopolistic Competition
Monopolistic Competition The third structural model we consider combines important
components of the preceding two models.
(c) Products are differentiated.
Managerial Economics Demand Curve Notes
Diminishing marginal utility: In a given time frame, consumption of additional units of a good
yields decreasing increments to total well being due to relative satiation (fullness).
2. Definition (for output market)
Managerial Economics Government Regulation Lecture
A public good is nonexcludable & nondepletable
The inability to exclude nonpayers creates a free-rider problem for the
private provision of public goods
Even when private firms supply public
Managerial Economics Market Structures Lecture
Large number of relatively small firms
No barriers to entry
Produces product with no close substitutes
Protected by a barrier to entry
Managerial Economics Notes on GDP
GDP is the market value of all final goods and services produced within a country
in a given period of time.
GDP is divided among four components of expenditure: consumption,
investment, government purchases, and net expo
Managerial Economics The Theory of Efficient Wages Notes
THE THEORY OF EFFICIENCY WAGES
Efficiency wages are above-equilibrium wages paid by firms in order to increase worker
The theory of efficiency wages states that firms operate more effi
Managerial Economics Efficiency Quiz Study Guide
Scale Efficiency asks if the firm is using the lowest possible minimum average cost for
all production processes defined as the ratio of this lowest cost to the potential average
Managerial Economics Supply and Demand Lecture Notes
A more general approach is to say that quantity demanded is a function of many
variables, not just price.
We focus on price because it is what adjusts to make markets clear.
But sometimes we want