Microeconomics at University Of Abuja | Flashcards & Summaries

Lernmaterialien für Microeconomics an der University of Abuja

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen Microeconomics Kurs an der University of Abuja zu.

TESTE DEIN WISSEN
What is a firm?
Lösung anzeigen
TESTE DEIN WISSEN
A firm is a business organisation that is into the production of foods and services.
They are organisations that also contribute to the provision of not only goods and services but of satisfaction of consumers needs and wants.
Lösung ausblenden
TESTE DEIN WISSEN
How many assumptions does a perfect competitive market structure have?
Lösung anzeigen
TESTE DEIN WISSEN
8
Lösung ausblenden
TESTE DEIN WISSEN
What are the assumptions of a perfect competitive market structure?
Lösung anzeigen
TESTE DEIN WISSEN
1. Large number of buyers and sellers.
2. Product homogeneity.
3. Free entry and exit of firms.
4. Profit maximisation.
5. Perfect mobility of factors of production.
6. Perfect knowledge.
7. No government regulations.
Lösung ausblenden
TESTE DEIN WISSEN
What is a perfect competitive market?
Lösung anzeigen
TESTE DEIN WISSEN
It is a market structure characterised by the complete absence of rivalry among individual firms.
It is characterised by impersonal competition among firms while every firm pursues its objectives, no single firm is strong enough to influence the decisions of other firms or market conducts.
Lösung ausblenden
TESTE DEIN WISSEN
What determines the firm's demand curve at equilibrium quantity supply?
Lösung anzeigen
TESTE DEIN WISSEN
The tangency of the short-run marginal curve and the price.
Lösung ausblenden
TESTE DEIN WISSEN
What is the formula for the short-run equilibrium curve of a perfect competitive market?
Lösung anzeigen
TESTE DEIN WISSEN
SMC=P=SMR
Lösung ausblenden
TESTE DEIN WISSEN
What is the second condition for equilibrium in a PCM?
Lösung anzeigen
TESTE DEIN WISSEN
The second condition requires that SMC increases at the point of intersection with SMR curve.
Thus, at point e, slope of MC > slope of MR
Lösung ausblenden
TESTE DEIN WISSEN
What is the formula for profit?
Lösung anzeigen
TESTE DEIN WISSEN
π = R - C
or
π = TR - TC

Where π is profit
TR (R) is total revenue 
TC (C) is total cost.
Lösung ausblenden
TESTE DEIN WISSEN
The demand curve is also ..................... in a perfect competitive market.
Lösung anzeigen
TESTE DEIN WISSEN
The marginal revenue curve
Lösung ausblenden
TESTE DEIN WISSEN
What are the sources of monopoly power?
Lösung anzeigen
TESTE DEIN WISSEN
1. Control over strategic production resources.
2. Market franchise.
3. Natural monopoly.
4. Creation of artificial barrier against competition.
Lösung ausblenden
TESTE DEIN WISSEN
What are the assumptions of a monopoly structure?
Lösung anzeigen
TESTE DEIN WISSEN
1. Profit maximisation.
2. Perfect knowledge about the market in the present and future.
3. Only one firm (which is the seller and the industry).
4. Barrier to entry of new firms.
5. Products may or may not be homogenous.
Lösung ausblenden
TESTE DEIN WISSEN
What is the first condition for profit maximisation?
Lösung anzeigen
TESTE DEIN WISSEN
MC = MR

MC = marginal cost
MR = marginal revenue
Lösung ausblenden
  • 396 Karteikarten
  • 10 Studierende
  • 1 Lernmaterialien

Beispielhafte Karteikarten für deinen Microeconomics Kurs an der University of Abuja - von Kommilitonen auf StudySmarter erstellt!

Q:
What is a firm?
A:
A firm is a business organisation that is into the production of foods and services.
They are organisations that also contribute to the provision of not only goods and services but of satisfaction of consumers needs and wants.
Q:
How many assumptions does a perfect competitive market structure have?
A:
8
Q:
What are the assumptions of a perfect competitive market structure?
A:
1. Large number of buyers and sellers.
2. Product homogeneity.
3. Free entry and exit of firms.
4. Profit maximisation.
5. Perfect mobility of factors of production.
6. Perfect knowledge.
7. No government regulations.
Q:
What is a perfect competitive market?
A:
It is a market structure characterised by the complete absence of rivalry among individual firms.
It is characterised by impersonal competition among firms while every firm pursues its objectives, no single firm is strong enough to influence the decisions of other firms or market conducts.
Q:
What determines the firm's demand curve at equilibrium quantity supply?
A:
The tangency of the short-run marginal curve and the price.
Mehr Karteikarten anzeigen
Q:
What is the formula for the short-run equilibrium curve of a perfect competitive market?
A:
SMC=P=SMR
Q:
What is the second condition for equilibrium in a PCM?
A:
The second condition requires that SMC increases at the point of intersection with SMR curve.
Thus, at point e, slope of MC > slope of MR
Q:
What is the formula for profit?
A:
π = R - C
or
π = TR - TC

Where π is profit
TR (R) is total revenue 
TC (C) is total cost.
Q:
The demand curve is also ..................... in a perfect competitive market.
A:
The marginal revenue curve
Q:
What are the sources of monopoly power?
A:
1. Control over strategic production resources.
2. Market franchise.
3. Natural monopoly.
4. Creation of artificial barrier against competition.
Q:
What are the assumptions of a monopoly structure?
A:
1. Profit maximisation.
2. Perfect knowledge about the market in the present and future.
3. Only one firm (which is the seller and the industry).
4. Barrier to entry of new firms.
5. Products may or may not be homogenous.
Q:
What is the first condition for profit maximisation?
A:
MC = MR

MC = marginal cost
MR = marginal revenue
Microeconomics

Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

Jetzt loslegen

Das sind die beliebtesten Microeconomics Kurse im gesamten StudySmarter Universum

Macroeconomics

Independent University, Bangladesh

Zum Kurs
Macroeconomics

Boise State University

Zum Kurs
Macroeconomics

Stockholm School of Economics

Zum Kurs
economics

University of Pretoria

Zum Kurs
Macroeconomics

Delaware State University

Zum Kurs

Die all-in-one Lernapp für Studierende

Greife auf Millionen geteilter Lernmaterialien der StudySmarter Community zu
Kostenlos anmelden Microeconomics
Erstelle Karteikarten und Zusammenfassungen mit den StudySmarter Tools
Kostenlos loslegen Microeconomics