Title: Microeconomics: Markets and Profits Flashcards | Quizlet
Headings: Microeconomics: Markets and Profits
Microeconomics: Markets and Profits
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Content: The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit. A monopoly is a market that has
a single supplier of a good or service. Which scenario is an example of market saturation? There are three shoe stores on one block in town, and they have trouble finding customers and making a profit. Which quality best describes a producer with an absolute advantage? efficient
Use the numbers to place the companies in order of greatest comparative advantage to least comparative advantage in producing large tubes of toothpaste. 4, 3, 1, 2
Why is pure competition considered an unsustainable system? Producers cannot make a profit if they keep dropping their prices. What is the difference between marginal cost and marginal revenue? Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.