we-2__EC2010-Final_Preview

for microecon final

Monopoly

A market structure where a single seller dominates the market, controlling prices and supply.

Oligopoly

A market structure in which a few firms dominate the market, often leading to competitive practices like price wars.

Monopolistic Competition

A market structure featuring many firms selling products that are similar but not identical, allowing for some degree of market power.

Factor Markets

Markets for the factors of production, where labor, land, and capital are bought and sold.

Gini Coefficient

A measure of income distribution in a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Externalities

Costs or benefits incurred by a third party who did not agree to the action causing the cost or benefit.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all without diminishing their use.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other party, often leading to adverse selection.

Comparative Advantage

The ability of a party to produce a good or service at a lower opportunity cost than another party.

Nash Equilibrium

A situation in a strategic game where no player has an incentive to change their strategy independently.

Tariff

A tax imposed on imported goods, used to restrict trade, increase domestic prices, and protect local industries.

Adverse Selection

A situation in which one party in a transaction has more information than the other, typically seen in insurance and market transactions.

Marginal Product (MP)

The additional output generated by adding one more unit of input while keeping other inputs constant.

Value of the Marginal Product (VMP)

The additional revenue generated from selling one more unit of output produced by an additional unit of input.

Common Pool Resources

Natural resources that are available to all but can be overused, leading to depletion and environmental concerns.