Microeconomics,, 16th Canadian Edition

by any given combination of inputs. economic profit The difference between the revenues received from the sale of output and the ...

marginal product (MP) The change in total output that results from using one more unit of a variable factor. law of diminishing ...

average variable cost (AVC) Total variable cost divided by the number of units of output. marginal cost (MC) The increase in tot ...

scale of a firm’s operations so that more of all inputs is being used. increasing returns (to scale) A situation in which output ...

market structure All features of a market that affect the behaviour and performance of firms in that market, such as the number ...

units are sold at the same price. marginal revenue (MR) The change in a firm’s total revenue resulting from a change in its sale ...

may be natural or created. natural monopoly An industry characterized by economies of scale sufficiently large that only one fir ...

monopolistic competition Market structure of an industry in which there are many firms and freedom of entry and exit but in whic ...

game theory The theory that studies decision making in situations in which one player anticipates the reactions of other players ...

over the quantity produced. natural monopoly An industry characterized by economies of scale sufficiently large that one firm ca ...

across two jobs to compensate the factor for differences in non-monetary aspects of the two jobs. transfer earnings The minimum ...

agreements. functional distribution of income The distribution of national income among the major factors of production: labour, ...

social cost Includes private cost to producers plus any external costs imposed on third parties. rivalrous A good or service is ...

A situation in which an individual or a firm takes advantage of special knowledge while engaging in socially inefficient behavio ...

may buy and sell among themselves. The total quantity of permits is set by government policy. progressive tax A tax that takes a ...

transfer payment A payment to an individual, a firm, or an organization that is not made in exchange for a good or service. equa ...

closed economy An economy that has no foreign trade—a situation referred to as autarky. gains from trade The increased output at ...

non-tariff barriers (NTBs) Restrictions other than tariffs designed to reduce imports. protection Any government policy that int ...

free trade area (FTA) An agreement among two or more countries to abolish tariffs on trade among themselves while each remains f ...

Contents Ragan Microeconomics Copyright Brief Contents Contents List of Boxes To the Instructor To the Student Acknowledgements ...