marginal cost curve:The curve that illustrates the marginal cost of each unit produced.marginal private benefit:The added benefit that individuals directly involved in an activity pay to increase the activity
by one unit.marginal private cost:The added cost individuals directly involved in an activity pay to increase the activity by one unit.marginal product:The amount that the total product increases or decreases if one more unit of an input is used.marginal revenue:The additional revenue realized when one more unit is produced.marginal social benefit:The added benefit that society gets from increasing an activity by one unit.marginal social cost:The added cost society pays to increase an activity by one unit.marginal utility:The added productivity or use that one additional unit yields.market:An exchange between a buyer and a seller.market demand:The quantities of a product or service that the total of all consumers are willing and able to purchase
at various prices.market economy:An economy in which economic questions are decided mostly by individuals in the marketplace.market organization:The way participants in markets are organized and the number of participants.market supply:The quantities that are supplied by producers at various prices in a particular industry or market.mean:The average in which the total value of the items in a distribution is divided by the number of items in the
distribution.median:The middle number in a distribution.merger:The combining of one firm with another firm it purchases.microeconomics:The branch of economics that examines the choices and interactions of individuals producing and
consuming one product, in one firm or industry.minimum wage law:A law that sets the lowest wage that can be paid for certain kinds of work.model:A simplified form of reality, which shows the relationship between different factors.monetary policy:The changing amount of money in the economy in order to reduce employment, keep prices stable.
and promote economic growth.monopolistic competition:A market organization in which many firms produce products that are different but similar
enough to be substitutes.monopoly:A form of market organization in which there is only one seller of a product.multiplier effect:The concept that any change in fiscal policy affects total demand and total income by an amount
larger than the amount of the change in policy.mutual savings banks:Banks that were first formed for the same reason as savings and loans associations and that
promote thrift by their members.Glossary23 53999X Gloss.qxd 1/23/04 10:31 AM Page 253