ECO 201 Final SNHU
Utility - answer benefit, pleasure, usage out of consumption you want to maximize utility
Law of Diminishing - answer The less you have the more valuable it is, the more you
have the less valuable.
Marginal Utility - answer Additional benefit or pleasure ( As you consume more of
something value declines)
Implicit Cost - answerlacks a paper trail, it is not traceable
Explicit Cost - answerhas a paper trail, is traceable
Opportunity Costs - answerWhat you give up or for go, value of what you gave up
Economic Profit - answerMoney left over after expenses
Marginal Cost - answerCost of producing one batch
Incremental Cost - answerCost of producing additional batches
Fixed Cost - answerA cost that does not change with level of production Ex. Rent or
Land
Variable Cost - answerA cost that changes with the level production Ex. Raw Material
Sunk Cost - answerCosts that are non retrievable, you can not get them back
Relevant Cost - answerIs making a decision to go one way or another, it is cost that is
changeable
Ex. Go to movies, pay for tix or don't see movie
Perfect Competition - answerLarge # of producers, Large # of customers, perfect
information, free exit and free entry, perfectly mobile resources, homogeneous product
Perfectly Competitive Firm - answeroperate at minimum point of cost curve, zero
economic profit , welfare is up , resources used optimally
Monopoly - answerone producer, economic profit long/short, reduce welfare, not
optimizing societies resources, product is higher and quantity is lower
Regulated Monopoly - answereconomy of scale, control over resources
Utility - answer benefit, pleasure, usage out of consumption you want to maximize utility
Law of Diminishing - answer The less you have the more valuable it is, the more you
have the less valuable.
Marginal Utility - answer Additional benefit or pleasure ( As you consume more of
something value declines)
Implicit Cost - answerlacks a paper trail, it is not traceable
Explicit Cost - answerhas a paper trail, is traceable
Opportunity Costs - answerWhat you give up or for go, value of what you gave up
Economic Profit - answerMoney left over after expenses
Marginal Cost - answerCost of producing one batch
Incremental Cost - answerCost of producing additional batches
Fixed Cost - answerA cost that does not change with level of production Ex. Rent or
Land
Variable Cost - answerA cost that changes with the level production Ex. Raw Material
Sunk Cost - answerCosts that are non retrievable, you can not get them back
Relevant Cost - answerIs making a decision to go one way or another, it is cost that is
changeable
Ex. Go to movies, pay for tix or don't see movie
Perfect Competition - answerLarge # of producers, Large # of customers, perfect
information, free exit and free entry, perfectly mobile resources, homogeneous product
Perfectly Competitive Firm - answeroperate at minimum point of cost curve, zero
economic profit , welfare is up , resources used optimally
Monopoly - answerone producer, economic profit long/short, reduce welfare, not
optimizing societies resources, product is higher and quantity is lower
Regulated Monopoly - answereconomy of scale, control over resources
