|
|
SHORTAGE: A condition in the market in which the quantity demanded is greater than the quantity supplied at the existing price. A shortage occasionally goes by the terms excess demand and sellers' market. A shortage causes an increase in the equilibrium price.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 15: Cost | Unit 4: Long-Run Cost
|
Page: 21 of 24
|
In this unit, you should have learned about:- The long run as a period in which all inputs are variable, meaning all costs are also variable.
- That in the long run a firm has the choice of capital or plant size.
- That in the long run a firm generally seeks the quantity of capital with the lowest short-run average total cost for the anticipated production level.
- The long-run average cost curve which is the envelope of short-run average total cost curves for different quantities of capital.
- That long-run average cost curve is U-shaped, with economies of scale responsible for the negative slope for small quantities of output and diseconomies of scale responsible for the positive slope for larger quantities of output.
- The minimum efficient scale, which is the quantity of output or range of output on the long-run average cost curve with the lowest average cost.
|
|
|
|
|
|
|
UTILITY The satisfaction of wants and needs obtained from the use or consumption of goods and services. The terms utility and satisfaction are, for the most part, used interchangeably in economics. The concept of utility is integral to utility analysis, consumer demand theory, and the microeconomic analysis of consumer behavior and market demand.
Complete Entry | Visit the WEB*pedia |
|
|
PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time at a garage sale trying to buy either one of those memory foam pillows or a remote controlled train set. Be on the lookout for small children selling products door-to-door.
Your Complete Scope
This isn't me! What am I?
|
|
|
Okun's Law posits that the unemployment rate increases by 1% for every 2% gap between real GDP and full-employment real GDP.
|
|
|
"Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations. " -- Steve Jobs, Apple Computer founder
|
|
X-M
Net Exports
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
