Microeconomics (Christopher T.S. Ragan) (z-lib.org)

The change in the quantity of a product demanded resulting from a change in real income (holding relative prices constant). Giff ...

larger population implies more demand for goods and services, and thus greater investment demand by firms. A larger population, ...

A firm that has a legal existence separate from that of the owners. state-owned enterprise A flrm that is owned by the governmen ...

Summary ...

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

15.1 A Brief Overview of the Capital Market LO 1 The demand for financial capital comes from firms’ need to finance their invest ...

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

15.2 Present Value LO 2 Since physical capital is durable, it delivers benefits to its owners over many years. As a result, firm ...

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

15.3 The Demand for Capital LO 3 Profit-maximizing firms will purchase capital up to the point at which the present value of the ...

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

15.4 The Supply of Capital LO 4 The economy’s supply of capital comes from households’ flow of desired saving. An increase in th ...

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

15.5 Equilibrium in the Capital Market LO 5 Equilibrium in the capital market is determined where the quantity of capital suppli ...

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 ...

Key Concepts Physical capital and financial capital Present value and the interest rate A firm’s optimal capital stock The econo ...

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

Study Exercises MyLab Economics Make the grade with MyLab Economics™: All Study Exercises can be found on MyLab Economics™. You ...

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

Fill-in-the-Blank 1. Fill in the blanks to make the following statements correct. a. A firm’s demand for financial capital is de ...