Master this deck with 23 terms through effective study methods.
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Represents the overall satisfaction from consuming a good.
The additional satisfaction from consuming one more unit.
Marginal Utility increases Total Utility until it reaches zero.
Total Utility is maximized at that consumption level.
The rate at which a consumer is willing to trade one good for another.
They are downward sloping and never intersect.
Substitutes can replace each other easily; complements are consumed together.
Represents combinations of goods that a consumer can afford.
Changes in income or prices of goods.
The change in quantity demanded due to a change in price.
The change in demand resulting from a change in consumer's income.
The change in quantity demanded due to a change in the price of a substitute.
The total output produced by all units of a variable factor.
The change in total product from using one more unit of a variable factor.
Total product divided by the number of units of the variable factor used.
Adding more of a variable input to fixed inputs will eventually yield lower per-unit returns.
When TP increases, MP is positive; when TP is maximized, MP is zero.
Total cost divided by the quantity of output produced.
Short-run costs involve fixed factors; long-run costs allow all factors to vary.
Occurs when marginal cost equals marginal revenue.
Charging different prices for the same product based on buyer characteristics.
Few firms dominate the market with high interdependence.
A state where supply and demand are balanced across all markets.