Solutions for Chapter Module 54 : The Production Function

Full solutions for Krugman's Economics for AP* | 2nd Edition

ISBN: 9781429218276

Solutions for Chapter Module 54 : The Production Function

Since 5 problems in chapter Module 54 : The Production Function have been answered, more than 4146 students have viewed full step-by-step solutions from this chapter. Chapter Module 54 : The Production Function includes 5 full step-by-step solutions. This textbook survival guide was created for the textbook: Krugman's Economics for AP*, edition: 2. This expansive textbook survival guide covers the following chapters and their solutions. Krugman's Economics for AP* was written by and is associated to the ISBN: 9781429218276.

Key Business Terms and definitions covered in this textbook
  • ability-to-pay principle

    the idea that taxes should be levied on a person according to how well that person can shoulder the burden

  • aggregate-demand curve

    a curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level

  • average total cost

    total cost divided by the quantity of output

  • business cycle

    fluctuations in economic activity, such as employment and production

  • cartel

    a group of firms acting in unison

  • club goods

    goods that are excludable but not rival in consumption

  • complements

    two goods for which an increase in the price of one leads to a decrease in the demand for the other

  • consumption

    spending by households on goods and services, with the exception of purchases of new housing

  • crowding-out effect

    the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending

  • deadweight loss

    the fall in total surplus that results from a market distortion, such as a tax

  • depreciation

    a decrease in the value of a currency as measured by the amount of foreign currency it can buy

  • efficiency wages

    above-equilibrium wages paid by firms to increase worker productivity

  • exports

    goods produced domestically and sold abroad

  • law of supply

    the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises

  • marginal cost

    the increase in total cost that arises from an extra unit of production

  • normative statements

    claims that attempt to prescribe how the world should be

  • oligopoly

    a market structure in which only a few sellers offer similar or identical products

  • price floor

    a legal minimum on the price at which a good can be sold

  • rational people

    people who systematically and purposefully do the best they can to achieve their objectives

  • utility

    a measure of happiness or satisfaction

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