Chapter 8 The Competitive Firm
o Competition and Profits
o All firms are in business to make a profit
o Their profit opportunities are limited by the amount of competition they face
Little competition, easier to be profitable
Lots of competition, much m
Chapters 5 Consumer Choice
o The more satisfaction we get from a product, the higher the price we are willing to
pay for it
Utility: the satisfaction obtained from using a good or service
Total Utility: the amount of satisfaction obtained
The Core Issues
o The purpose of an economy is to produce goods and services that satisfy peoples
wants using the limited resources available
o 3 core choices
What to produce with limited resources?
How to produce goods and services we select?
CHS Econ Chapter 3 Supply and Demand
Supply and Demand
o The goal of this chapter is to explain supply and demand
What determines the price?
How does the price of a product affect its production and consumption?
Why do prices and production levels ofte
Chapter 10 Monopoly
o A monopoly is an industry in which there is only one product
o Thus there is no competition
A monopolist has significant market power; it can dictate the price
A monopolist doesnt have to continuously modify its product si