- Module 57 .1: In each of the following situations, what type of market structure ...
- Module 57 .2: Which of the following is true for a monopoly? I. There is only one...
- Module 57 .3: Which of the following is true for an oligopoly? I. There are a few...
- Module 57 .4: Which of the following is true for a monopolistically competitive i...
- Module 57 .5: Which of the following is an example of differentiated products? a....
Solutions for Chapter Module 57 : Introduction to Market Structure
Full solutions for Krugman's Economics for AP* | 2nd Edition
goods that are rival in consumption but not excludable
constant returns to scale
the property whereby long-run average total cost stays the same as the quantity of output changes
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
the value of everything a seller must give up to produce a good
the fall in total surplus that results from a market distortion, such as a tax
costs that do not vary with the quantity of output produced
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
marginal tax rate
the amount that taxes increase from an additional dollar of income
a situation in which a market left on its own fails to allocate resources efficiently
the study of how households and firms make decisions and how they interact in markets
a good for which, other things being equal, an increase in income leads to an increase in demand
the stock of equipment and structures that are used to produce goods and services
production possibilities frontier
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
the path of a variable whose changes are impossible to predict
real exchange rate
the rate at which a person can trade the goods and services of one country for the goods and services of another
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve
theory of liquidity preference
Keynes’s theory that the interest rate adjusts to bring money supply and money demand into balance
the market value of the inputs a firm uses in production
willingness to pay
the maximum amount that a buyer will pay for a good