University of Toronto Mississauga
Department of Economics
Term Test One
October 24 2008
1. The wage rate of leather workers falls. Explain what happens in the market for leather briefcases.
a) the supply of leather briefcases increases
b) the qu
ECO100 : Introduction to Economics Lecture 22 : Perfect competition
Price and ATC
P = minimum ATC
o economic profit=0
o break-even point
P > minimum ATC
o firms make positive economic profit
P < minimum ATC
o economic loss
The firms shutdown point in the
ECO100-Introduction to Economics-Lecture 23 : Monopoly
Perfect competition and efficiency
The situation in which a good or service is produced at the lowest possible cost.
Profit maximizing - cost minimizing
ECO100-Introduction to Economics-Lecture 24 : Oligopoly
Oligopoly is a market structure in which a small number of firms compete.
Barriers to entry exists.
Interdependence between firms. One firms decisions affect other firms in the
ECO100 : Introduction to Economics Lecture 1 : Introduction to Economics
What is Economics?
Economics explains peoples behavior and studies the choices people make to attain their goals
given their scarce resources.
There are 3 key ideas in Economics: