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Unit 1: Microeconomics

Horizontales
Independent operators pay for the company name and get to run the business at lower risk, cost
Anything used to make or obtain what people need or want
Usefulness
Degree to which changes in a product’s price affect demand and/or supply
Quantity producers are willing and able to offer
Business owned & controlled by one person
Principle that productivity will increase to a point, but then marginal product will drop
Limited resources + unlimited wants
Business in which a group of investors (stockholders) share in the profits & losses
Additional cost of producing one more unit of output
Physical object that can be purchased
Verticales
rice at which supply = demand
Consumers may choose a similar, lower-priced alternative for an expensive product
Value of the good that was sacrificed
Change in output generated by adding one more unit of input
Represents a share of a corporation bought & sold
Profits paid to shareholders
Level of output resulting from a given level of input
Business owned & controlled by 2+ people
Action or activity performed for a fee
Quantity that a consumer is willing and able to buy