- Module 60 .1: Which of the following events will induce firms to enter an industr...
- Module 60 .2: Assume that the egg industry is perfectly competitive and is in lon...
- Module 60 .3: Compared to the short-run industry supply curve, the long-run indus...
- Module 60 .4: Which of the following is generally true for perfect competition? I...
- Module 60 .5: Which of the following will happen in response if perfectly competi...
Solutions for Chapter Module 60 : Long-Run Outcomes in Perfect Competition
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
total revenue divided by the quantity sold
average total cost
total cost divided by the quantity of output
average variable cost
variable cost divided by the quantity of output
a difference in wages that arises to offset the nonmonetary characteristics of different jobs
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
a good for which an increase in the price raises the quantity demanded
the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
law of demand
the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
the increase in output that arises from an additional unit of input
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
model of aggregate demand and aggregate supply
the model that most economists use to explain shortrun fluctuations in economic activity around its long-run trend
two goods with straight-line indifference curves
a curve that shows the short-run trade-off between inflation and unemployment
an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
a person for whom another person, called the agent, is performing some act
goods that are neither excludable nor rival in consumption
real interest rate
the interest rate corrected for the effects of inflation
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one