- Module 53.1: Suppose a firm can sell as many units of output as it wants for a p...
- Module 53.2: Use the data from Question 1 to graph the firms marginal cost and m...
- Module 53.3: Use the data in the table provided to answer Questions 13. Quantity...
- Module 53.4: A firm should continue to produce in the long run if its a. total r...
- Module 53.5: A firm earns a normal profit when its a. accounting profit equals 0...
Solutions for Chapter Module 53: Profit Maximization
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
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
the limit on the consumption bundles that a consumer can afford
the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the future
the value of everything a seller must give up to produce a good
diseconomies of scale
the property whereby long-run average total cost rises as the quantity of output increases
the uncompensated impact of one person’s actions on the well-being of a bystander
the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk
internalizing the externality
altering incentives so that people take account of the external effects of their actions
the ease with which an asset can be converted into the economy’s medium of exchange
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
the set of assets in an economy that people regularly use to buy goods and services from other peopl
a firm that is the sole seller of a product without close substitutes
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
the total income in the economy that remains after paying for consumption and government purchases
nominal interest rate
the interest rate as usually reported without a correction for the effects of inflation
variables measured in physical units
a tax for which highincome taxpayers pay a smaller fraction of their income than do low-income taxpayers
the number of percentage points of annual output lost in the process of reducing inflation by 1 percentage point
two goods for which an increase in the price of one leads to an increase in the demand for the other
a cost that has already been committed and cannot be recovered