Unit Manual Terms 5 Flashcards
1
Q
Supply Curve
A
Graphic representation of the relationship between product price and quantity of product that a seller is willing to supply
2
Q
Transaction costs
A
Costs that are incurred in making an exchange of goods, not including the cost of the
good itself
3
Q
Total Cost
A
Total cost of producing a given ouput, it is also the sum of marginal costs
4
Q
Willingness to Pay
A
Minimum monetary compensation that an individual would pay to give up something
– given as the area under the demand
curve
5
Q
Willingness to Accept
A
Maximum monetary compensation that an individual would to give up to gain something
- Given as the area above the demand curve
6
Q
Utility
A
Ordinal measure of preferences
