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Solutions for Chapter 7: Consumers, Producers, and the Efficiency of Markets

Principles of Microeconomics | 7th Edition | ISBN: 9781285165905 | Authors: N Gregory Mankiw

Full solutions for Principles of Microeconomics | 7th Edition

ISBN: 9781285165905

Principles of Microeconomics | 7th Edition | ISBN: 9781285165905 | Authors: N Gregory Mankiw

Solutions for Chapter 7: Consumers, Producers, and the Efficiency of Markets

This expansive textbook survival guide covers the following chapters and their solutions. Since 11 problems in chapter 7: Consumers, Producers, and the Efficiency of Markets have been answered, more than 25504 students have viewed full step-by-step solutions from this chapter. This textbook survival guide was created for the textbook: Principles of Microeconomics, edition: 7. Chapter 7: Consumers, Producers, and the Efficiency of Markets includes 11 full step-by-step solutions. Principles of Microeconomics was written by and is associated to the ISBN: 9781285165905.

Key Business Terms and definitions covered in this textbook
  • average variable cost

    variable cost divided by the quantity of output

  • bond

    a certificate of indebtedness

  • budget deficit

    an excess of government spending over government receipts

  • cross-price elasticity of demand

    a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good

  • diminishing returns

    the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

  • economic profit

    total revenue minus total cost, including both explicit and implicit costs

  • externality

    the uncompensated impact of one person’s actions on the well-being of a bystander

  • federal funds rate

    the interest rate at which banks make overnight loans to one another

  • imports

    goods produced abroad and sold domestically

  • inferior good

    a good for which, other things being equal, an increase in income leads to a decrease in demand

  • law of demand

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

  • monopolistic competition

    a market structure in which many firms sell products that are similar but not identical

  • moral hazard

    the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior

  • 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

  • rational people

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

  • signaling

    an action taken by an informed party to reveal private information to an uninformed party

  • sunk cost

    a cost that has already been committed and cannot be recovered

  • trade policy

    a government policy that directly influences the quantity of goods and services that a country imports or exports

  • variable costs

    costs that vary with the quantity of output produced

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