Category: Education
Created by: Timmwilson
Number of Blossarys: 22
Ability of one person or nation to produce a product at a lower resource cost than another person or nation. It is possible to have an absolute advantage in multiple goods when comparing to other ...
Ability of one person or nation to produce a good at a lower opportunity cost than another person or nation. It is not possible to have a comparative advantage in both products.
The amount a consumer is willing to pay for a product – the price the consumer actually pays. Can be used to measure the utility a consumer feels.
Defines the price at which substitute products become interchangeable. Formula: cped = % change in quantity of X demanded / % change in the price of Y. Cross price elasticity is positive for ...
The decrease in total surplus of the market that is a result of a policy. Ex: price ceilings/floors; government intervention.
Defined as total revenue - economic cost. Economic costs involve both implicit and explicit costs.
A monetary payment. Accounting cost = explicit cost.
By: Timmwilson