AmosWEB is Economics: CLASS*portal

Tuesday
June 6, 2023

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MARGINAL-COST PRICING: A pricing scheme in which the price received by a firm is set equal to the marginal cost of production. This is not only the efficient outcome achieved by competitive markets, it is commonly used for comparison of other regulatory policies, such as average-cost pricing, that are used for public utilities (especially those that are natural monopolies). The bad thing about marginal-cost pricing for natural monopolies is that a normal profit is not guaranteed. The good thing about marginal-cost pricing is that marginal cost is equal to price, and the public utility is operating according to the price equals marginal cost (P = MC) rule of efficiency.

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production stages (289)
total fixed cost curve (75)
marginal physical product (64)
perfect competition, short-run supply curve (59)
limited resources (57)

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Lesson 20: Oligopoly | Unit 5: Evaluation

Page: 22 of 24

Topic: The Good

The two most noted goods from oligopoly are:

Innovations:

Of the four market structures, oligopoly is the one most prone toward innovation.

And innovations are what advance the level of technology, expands production capabilities, promotes economic growth, and leads to higher living standards.

Scale Economies: Oligopoly firms are also able to take advantage of scale economies that reduce production costs and prices.

As large firms, they can "mass produce" at low average cost.

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BANK LIABILITIES

What a bank owes, including most notably customer deposits. Bank liabilities are typically listed on the right-hand side of a bank's balance sheet. Bank assets, what a bank owns, are listed on the left-hand side of a bank's balance sheet. Net worth is the difference between assets and liabilities. The most important liability category of most bank is checkable deposits, which is part of the economy's M1 money supply. The largest liability category includes other types of deposits (especially savings deposits, certificates of deposit, and money market deposits) that enter into the M2 and M3 monetary aggregates.

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BROWN PRAGMATOX
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Today, you are likely to spend a great deal of time watching the shopping channel seeking to buy either a hepa filter for your furnace or a wall poster commemorating next Thursday. Be on the lookout for strangers with large satchels of used undergarments.
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!

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