Term
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Definition
| to be able to make something using fewer resources than other producers require |
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Definition
| achieved when the firm produces the output most preferred by consumers |
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Definition
| laws that promote anticompetitive behavior and promote competition |
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Term
| articles of incorporation |
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Definition
| written application to the state seeking permission to form a corporation |
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Definition
| a system of exchange in which products are traded directly for other products |
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Term
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Definition
| a contract promising to repay borrowed money on a designated date and pay interest along the way |
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Definition
| all human creations used to produce goods and services; for example, factories, trucks, and machines |
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Term
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Definition
| an asset owned by the borrower that can be sold to pay off the loan in the event that the loan is not repaid |
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Definition
| one firm that combines with another firm in a different industry, like Sony and a plastic maker |
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Term
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Definition
| the difference between the maximum amount that consumers are willing to pay for a given quantity of a good and what they actually pay |
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Definition
| an organization of people who pool their resources to buy and sell more efficiently than they could independently |
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Term
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Definition
| a legal entity with an existence that is distinct from the real people who organize, own, and run it |
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Term
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Definition
| the ability to borrow now based on the promise of repayment in the future |
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Term
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Definition
| consumers are less willing and able to buy the product at every price |
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Term
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Definition
| producers are less willing and able to supply the product at every price |
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Term
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Definition
| a relation showing the quantities of a good that consumers are willing and able to buy at various prices during a given time period, OTC |
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Term
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Definition
| a curve or line showing the quantities of a particular good demanded at various prices during a given time period, OTC |
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Term
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Definition
| a mismatch between quantity demanded and quantity supplied, usually temporary except when gov't intervention takes place |
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Term
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Definition
| that portion of after-tax corporate profits paid out to shareholders |
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Term
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Definition
| sorting the production of process into separate tasks to be carried out by separate workers |
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Term
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Definition
| an expansion in the economy's production possibilities or ability to produce |
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Term
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Definition
| the set of mechanisms and institutions that resolve the what, how, and for whom questions of the economy |
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Term
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Definition
| the study of how people use their scarce resources to satisfy their unlimited wants |
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Term
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Definition
| forces that reduce a firm's average cost as the firm's size increases in the long run |
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Term
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Definition
| producing the maximum possible output from the available resources |
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Term
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Definition
| percentage change in quantity demanded/percentage change in price |
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Term
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Definition
| percentage change in quantity supplied/percentage change in price |
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Term
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Definition
| money needed to start or expand a business |
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Term
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Definition
| bank or institution that serves as a GO-BETWEEN |
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Term
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Definition
| any production cost that is independent of the firm's output |
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Term
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Definition
| achieved when a firm produces at the lowest possible cost per unit |
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Term
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Definition
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Term
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Definition
| that portion of after-tax corporate profit reinvested in the firm |
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