Economics Production Notes
Production is the process by which resources are transformed into useful forms.
Resources, or inputs, refer to anything provided by nature or previous generations that
can be used directly or indirectly to satisfy human wants.
Economics Systems Lecture
An Economic System
An economic system is a method used by a society to produce and distribute goods and
There are three key questions addressed by every economic system:
What goods and services will be produced?
Profit Maximization Notes
Examines the payoffs associated with alternative choices of each participant in the game.
A dominant strategy is one that provides the highest payoff for an individual for each and every
Profit Maximization Study Guide
Economic profit = total revenue - all economic costs
Economic costs include all opportunity costs (explicit and implicit).
Economic vs. accounting profit
economic profit = total revenue - all economic co
Economics Midterm Study Guide
An imperfectly competitive industry is an industry in which single firms have some
control over the price of their output.
Market power is the imperfectly competitive firms ability to raise price without losing all
Market Failures: Externalities
When a market outcome affects parties other than the buyers and sellers
in the market, side-effects are created called externalities.
Externalities cause markets to be inefficient, and thus fail to maximi