mkt100 Study Guide - Midterm Guide: Whopper, Price Ceiling, Marginal Cost

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8 Nov 2016
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Elastic tax: can benefit either producer or consumer. Inelastic tax: benefits producers by the consumers being burdened with paying most of the tax. Government regulates a maximum price that producers can charge. Pri(cid:272)e floor: hift of (cid:271)urde(cid:374) i(cid:374) the produ(cid:272)er"s fa(cid:448)our. Go(cid:448)er(cid:374)(cid:373)e(cid:374)t regulates the (cid:373)i(cid:374)i(cid:373)u(cid:373) (cid:455)ou can charge for a good/service. Diminishing marginal productivity: by continually adding more inputs, eventually the output (cid:449)ill fall resulti(cid:374)g at operati(cid:374)g at a loss (cid:894)(cid:374)egati(cid:448)e (cid:373)argi(cid:374)al produ(cid:272)ti(cid:448)it(cid:455)(cid:895). Marginal cost: change in total cost for one-unit change in output. Marginal product: additional output resulting from an additional input. Total cost: divided into fixed and variable costs. Ability to shed personal income and gain added expenses. Unlimited personal liability (even u(cid:374)der a part(cid:374)er"s (cid:271)lu(cid:374)der(cid:895) Accounting cost: total costs are the wages paid to labor, rent paid to owners of capital, interest paid to lenders, and actual payments to other factors of production. Explicit costs: quantifiable measures of payment (i. e. receipts)

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