Category: Education
Created by: Timmwilson
Number of Blossarys: 22
English (EN) Defined as total revenue - economic cost. Economic costs involve both implicit and explicit costs.
An opportunity cost that does not involve a monetary payment. Ex: opportunity cost of the entrepreneur's time / opportunity cost of the entrepreneur's funds that could have been invested elsewhere.
A monetary payment. Accounting cost = explicit cost.
The decrease in total surplus of the market that is a result of a policy. Ex: price ceilings/floors; government intervention.
The price a producer receives for a product – the marginal cost of production.
The amount a consumer is willing to pay for a product – the price the consumer actually pays. Can be used to measure the utility a consumer feels.
By: Timmwilson