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SEVENTH RULE OF COMPLEXITY: The seventh of seven basic rules of the economy. It is the observation that the world is complex, that every action has direct and often intended consequences and indirect and probably unintended effects (that is, cause and effect). A few of the more noted illustrations of this seventh rule are the circular flow (especially the expenditure multiplier) and market failures (especially externalities).
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Lesson 5: Market Demand | Unit 4: Determinants
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Page: 13 of 20
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Topic:
Ceteris Paribus Factors
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Ceteris paribus is the notion that other things remain constant. We make this assumption because things other than price affect demand.- These other, ceteris paribus factors, give us useful analytical tools for examining demand and the market.
- We can turn these factors off and on to better understand how the market works.
- The ceteris paribus factors are called demand determinants.
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AVERAGE VARIABLE COST Total variable cost per unit of output, found by dividing total variable cost by the quantity of output. When compared with price (per unit revenue), average variable cost (AVC) indicates whether or not a profit-maximizing firm should shut down production in the short run. Average variable cost is one of three average cost concepts important to short-run production analysis. The other two are average total cost and average fixed cost. A related concept is marginal cost.
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BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet seeking to buy either storage boxes for your computer software CDs or a set of tires. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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This isn't me! What am I?
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More money is spent on gardening than on any other hobby.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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AIBD
Association of International Bond Dealers (now called International Securities Market Association)
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