ECONS 101 Lecture Notes - Lecture 50: Excise, Deadweight Loss, Marginal Revenue
Document Summary
Profit: revenue- explict costs & deprecitation (measures cash flow) Administrative cost: time spent filling out tax forms. Average fixed cost: continually decreases as output increases at low levels of output a firm may experience increasing returns on labor. Barter: goods & services traded directly for other g&s. Benefits principal: ppl who benefit the most from public spending should bare largest burden of paying for it. Bounded rationality: making a choice close to (but not) the one w/highest possible profit b/c effort in finding best pay-off is too expensive. Bowed-out shape of production frontier reflects: increasing op. costs. Budget lines: shows what consumer can afford at current income. Comparative advantage: lower opportunity cost than everyone else. Competitive market: market w/ many buyers and sellers of same good/service. Diminishing marginal utility: consumer satisfaction declines w/ each additional unit. Economic profit: revenue op. cost op. c= explicit costs. Economic theory: ppl most likely to change behavior when given incentives to do so.
