- 13.1: This chapter discusses many types of costs: opportu-nity cost, tota...
- 13.2: Your aunt is thinking about opening a hardware store. She estimates...
- 13.3: A commercial fisherman notices the following relationship between h...
- 13.4: Nimbus, Inc., makes brooms and then sells them door-to-door. Here i...
- 13.5: You are the chief financial officer for a firm that sells digital m...
- 13.6: Consider the following cost information for a pizzeria:QuantityTota...
- 13.7: Your cousin Vinnie owns a painting company with fixed costs of $200...
- 13.8: The city government is considering two tax proposals:A lump-sum tax...
- 13.9: Janes Juice Bar has the following cost schedules:Quantity Variable ...
- 13.10: Consider the following table of long-run total costs for three diff...
Solutions for Chapter 13: The Costs of Production
Full solutions for Principles of Microeconomics | 7th Edition
the ability to produce a good using fewer inputs than another producer
a person who is performing an act for another person, called the principal
a government regulation specifying a minimum amount of bank capital
a group of firms acting in unison
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 fall in total surplus that results from a market distortion, such as a tax
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
the amount of money in the future that an amount of money today will yield, given prevailing interest rates
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
the revenue the government raises by creating money
a tax that is the same amount for every person
marginal tax rate
the amount that taxes increase from an additional dollar of income
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
natural rate of unemployment
the normal rate of unemployment around which the unemployment rate fluctuates
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
nominal interest rate
the interest rate as usually reported without a correction for the effects of inflation
the organized withdrawal of labor from a firm by a union
the manner in which the burden of a tax is shared among participants in a market
an excess of exports over imports