Podcast
Questions and Answers
In a perfectly competitive market, firms are price takers, meaning that no individual firm has the power to influence the ______ of the product.
In a perfectly competitive market, firms are price takers, meaning that no individual firm has the power to influence the ______ of the product.
market price
A negative externality occurs when the production or consumption of a good or service imposes a cost on a third party who is not involved in the ______; pollution from a factory is a common example.
A negative externality occurs when the production or consumption of a good or service imposes a cost on a third party who is not involved in the ______; pollution from a factory is a common example.
transaction
To maximize profits, a monopolist will produce at the quantity where marginal revenue equals marginal cost, and then set the price according to the ______ curve at that quantity.
To maximize profits, a monopolist will produce at the quantity where marginal revenue equals marginal cost, and then set the price according to the ______ curve at that quantity.
demand
The law of diminishing returns states that as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually ______.
The law of diminishing returns states that as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually ______.
In game theory, a dominant strategy is one that is optimal for a player, no matter what strategies the ______ choose. In other words, it consistently provides the best outcome regardless of the actions of others.
In game theory, a dominant strategy is one that is optimal for a player, no matter what strategies the ______ choose. In other words, it consistently provides the best outcome regardless of the actions of others.
