Microeconomy

reservation price

maximum price consumer is willing to pay

why do monopiles exist

it exist because of barriers to entry

why do natural monopolies exist?

if single company can serve the market at lower costs than 2 or more can

under monopoly what happened to MR and price

mr always gonna be smaller then price

explain oligopoly

there is few sellers and they can sell heterogenuos or homogeneous products

what is duopoly

oligopoly with 2 firms

what is cartel

it means 2 firms in a oligopoly join hands and increase the price

what is productive efficiency

producing at lowest cost possible

and what is the graphic

price=minimum ATC

what is allocative efficiency

producing at amount desired by society

and in graphically

price=MC

what is utility

the worth or value of a good and service

what is inferior goods

its demands increase when peoples income falls and the demands decrease when the income increase

Movement along the supply curve

due to change in price

shift in supply curve

due to changes in production cost

what is budget constraint

the total amount of items you can afford within a budget

what is indifference curve

a chart showing various combinations of 2 goods that leave the consumer equally satisfied

what is total utility

the overall satisfaction that consumer get from goods or service

what is marginal utility

the added satisfaction consumer gets from having one or more unit of good service

what is complements

goods that must be consumed with another good

what does fixed cost mean

togtmol zardal

what does variable cost mean

any expenses based on how much a company produces and sells

average variable cost

perfect competition formula

MR=MC=P

Monopoly formula

MR=MC

Marginal costs (zailshgui zardal)

change in total cost that comes from making or producing 1 additional unit

welfare economics (niigmiin halamj)

focuses on finding the optimal allocation of economic resources, goods, and income to best improve the overall good of society

subjective well being

1. how people experience and evaluate their lives and specific domains and activities in their lives

2. often assessed using indicators that measure aspects of education, physical and built environment, community, and economy.

1

objective well being

1. often assessed using indicators that measure aspects of education, physical and built environment, community, and economy.

2. how people experience and evaluate their lives and specific domains and activities in their lives

1