When a good has more than one use, so an increase in demand for one good that uses it decreases the supply of other goods that use it.
Shutdown considerations:
Should a firm with the following costs and revenue shut down in LR or SR?
Stay open in LR and SR
Firm is making normal profit. (Normal profit = profit level necessary to keep firm in industry in LR)
(Firm is indifferent to staying in market)
What is the basic economic problem?
The basic economic problem states that resources have to be allocated between competing uses because wants are infinite while resources are scarce.
Will better pay improve productivity?
No. But higher productivity will improve worker pay because the worker is producing more for a given wage rate.
What does a negative power represent?
It gives the reciprocal of the number that it is being applied to.
What is quantitative market research?
Quantitative market research involves collecting and analyzing numerical data to quantify market trends, measure customer demand, and understand consumer behavior through statistical analysis and mathematical models.
What is the process of solving a quadratic inequality?
Solve it like an equation to find the critical values (when it is equal to zero). Then use a sketch of the quadratic to determine the set of values of x (or use your calculator inequality solver!)
Why might fixed costs change?
Fixed costs will change if an external factor (other than output) changes. For example: your rent could change from year to year.
A per-unit tax is paid per unit of production/sale.
The period of time in which at least one fixed factor of production (usually capital) is fixed.