| A | B |
|---|
| depreciation | a noncash charge the firm takes for wear and tear on its capital goods |
| cash flow | sum of net income and noncash charges like depreciation |
| multinational | a corporation that has manufacturing or service operations in a number of different countries. |
| microeconomics | the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm |
| common stock | ONE VOTE PER share of stock |
| laissez-faire | FRENCH " allow them to do" philosophy gov't should NOT interfere with business activity |
| natural monopoly | describes a firm's cost structure (high fixed cost, extremely low constant marginal cost) |
| monopoly | describes market share and market power |
| collusion | a secret agreement, esp. for fraudulent or treacherous purposes; conspiracy: Some of his employees were acting in collusion to rob him |
| price-fixing | the establishing of prices at a determined level, either by a government or by mutual consent among producers or sellers of a commodity |
| oligopoly | the market condition that exists when there are few sellers, as a result of which they can greatly influence price and other market factors |
| trust | confidence in the certainty of future payment for property or goods received; credit: to sell merchandise on trust |
| perfect competition | A market structure in which the following five criteria are met: 1. All firms sell an identical product. 2. All firms are price-takers. 3. All firms have a relatively small market share. 4. Buyers know the nature of the product being sold and the prices charged by each firm. 5. The industry is characterized by freedom of entry and exit. Sometimes referred to as "pure competition". |
| economics of scale | the cost advantages that a firm obtains due to expansion |
| negative externality | something that costs the producer nothing, but is costly to society in general |
| positive externality | something that benefits society, but in such a way that the producer cannot fully profit from the gains made |
| collective bargaining | the process whereby workers organize collectively and bargain with employers regarding the workplace |
| subsidy | a form of financial assistance paid to a business or economic sector |
| supply schedule | A table or listing showing the exact quantities of a single type of good (or service) that potential sellers would offer to sell at each of a number of varying prices during some particular time period |
| marginal revenue | the extra revenue that an additional unit of product will bring |
| total revenue | total number of dollars received by a firm from the sale of a product |
| complement | the complement of X is something that together with X makes a complete whole, something that supplies what X lacks |
| excise tax | a tax on the manufacturing or sale of selected items like gas & liquor. It is the 5th largest source of gov't revenue. |
| substitution effect | an increase in price of one good causes a buyer to buy more of the other good, since the first good has become relatively expensive, and vice versa. |
| law of supply | principal that more will be offered for sale at high prices than at low |
