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ECO202 Midterm Review

Teacher: Professor Glenda Evans
Horizontales
When a money payment made for resources not owned by the firm itself
The law that states beyond some point additional units of a product will yield less and less extra satisfaction to a consumer
The change in total utility obtained by consuming one more unit of a good
The theory that assumes that consumers behave rationally, attempting to maximize their satisfaction
Costs that reflect opportunity costs to economists
The increase in total output attributable to the employment of one more worker
The satisfaction or pleasure one gets from consuming a good or service
Verticales
Shows all possible combinations of two goods that can be purchased, given money income and the prices of goods.
Cost defined as payments that must be received by resource owners to insure the resources' continued supply
Determined by summing the marginal units of each unit consumed
Calculated by subtracting explicit and implicit costs from total revenue
The return to the entrepreneur when economic profits are zero
Includes explicit and implicit costs, including a normal profit