GMS 200 Study Guide - Final Guide: Demand Curve, Indifference Curve, Invisible Hand

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Margaret Buckby

Document Summary

Ar curve for a pc firm (test 2) Lac of a firm in an industry (test 2: where big and small firm exists, where only big firms can survive. In the short run, a pc firm will maximize profits at that level of output where: tr exceeds tc by the maximum amount. Explicit cost: out of pocket expense paid to others. Implicit cost: cost of using one"s own resources which are not paid out. Loss minimizing: tr < tc but tr > tvc. Change in quantity supplied: is affected by price (seller"s reaction to price) Change in supply: is affected by other factors (weather) Normal goods: are when dd increase and income increase, therefore income increase, people buy more goods (expensive, good quality) Inferior goods: are when dd increase and income decreases, therefore people buy things at flea markets, good will and so on . Opportunity cost: when you give up something for another.