Enhance Your Learning with Economics - Profit Maximization Flash Cards for quick learning
The study of how individuals, businesses, and societies allocate scarce resources to satisfy unlimited wants.
The process by which a company determines the price and output level that generates the highest profit.
The total amount of money a company earns from selling its goods or services.
The expenses incurred by a company in producing and selling its goods or services.
The difference between total revenue and total cost, representing the financial gain obtained by a company.
The process of transforming inputs (resources) into outputs (goods or services).
The quantity of goods or services produced by a company within a given time period.
The organizational and competitive characteristics of a market, such as the number of buyers and sellers, barriers to entry, and product differentiation.
A market structure characterized by a large number of buyers and sellers, homogeneous products, perfect information, and ease of entry and exit.
A market structure characterized by a single seller, no close substitutes, significant barriers to entry, and the ability to influence prices.
A market structure characterized by a few large firms, differentiated products, interdependence among firms, and barriers to entry.
A market structure characterized by many firms, differentiated products, limited market power, and ease of entry and exit.
The methods used by companies to set prices for their products or services, taking into account factors such as costs, competition, and customer demand.
A measure of how responsive the quantity demanded of a good or service is to changes in price, income, or other factors.
The examination of the additional benefits and costs of producing or consuming one more unit of a good or service.
The process of selecting the best course of action among available alternatives, considering costs, benefits, and risks.
Situation in which the allocation of goods and services by a free market is not efficient, leading to a net loss of economic welfare.
Costs or benefits that are not reflected in the market price of a good or service, affecting third parties.
Goods or services that are non-excludable and non-rivalrous, meaning they are available to all and consumption by one person does not reduce availability to others.
Actions taken by the government to influence or control economic activities, such as imposing taxes, providing subsidies, or implementing regulations.
The exchange of goods and services between countries, allowing for specialization, increased efficiency, and access to a wider range of products.
The ability of a country to produce a good or service at a lower opportunity cost than other countries.
Government policies aimed at influencing the overall performance of the economy, including fiscal policy, monetary policy, and supply-side policies.
The use of government spending and taxation to influence the economy, particularly in relation to aggregate demand and economic growth.
The control of the money supply and interest rates by a central bank to stabilize the economy, control inflation, and promote economic growth.
Government policies aimed at increasing the productive capacity of the economy, such as reducing taxes, deregulation, and investment in education and infrastructure.
An increase in the real output of goods and services produced by an economy over time, often measured by changes in GDP.
The process of improving the economic, social, and political well-being of a country, often measured by indicators such as income, education, and life expectancy.