Microeconomics Final Exam Questions & Answers 2024/2025, Exams of Microeconomics

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Microeconomics Final Exam Questions & Answers 2024/2025 absolute advantage - ANSWER-the ability to produce a good using fewer inputs than another producer average fixed cost (AFC) - ANSWER-Total fixed cost divided by the number of units of output; a per-unit measure of fixed costs. AFC = FC/Q average total cost (ATC) - ANSWER-Total cost divided by the number of units of output ATC = TC/Q or ATC = AFC + AVC average variable cost (AVC) - ANSWER-variable cost divided by the number of units of output AVC = VC/Q budget constraint - ANSWER-the limits imposed on household choices by income, wealth, and product prices. capital - ANSWER-goods used to produce other goods cartel - ANSWER-a group of firms that gets together and makes joint price and output decisions to maximize joint profits ceteris paribus - ANSWER-a devise used to analyze the relationship between two variable while the values of other variables are held unchanged. clayton act - ANSWER-act outlawed specific monopolistic behaviors such as tying contracts command economy - ANSWER-An economy in which a central government either directly or indirectly sets output targets, incomes, and prices comparative advantage - ANSWER-the ability to produce a good at a lower opportunity cost than another producer complements - ANSWER-two goods for which an increase in the price of one leads to a decrease in the demand for the other and vice versa consumer goods - ANSWER-goods produced for present consumption consumer sovereignty - ANSWER-The idea that consumers ultimately dictate what will be produced (or not produced) by choosing what to purchase (and what not to purchase).