ECO 201 Final Exam Miami
Willingness to Pay (WTP) - ANS-the maximum amount that a buyer will pay for a good
total willingness to pay (TWTP) - ANS-the maximum amount of money that buyers in a
market are willing and able to give up the index change for Q units of the good
Marginal Willingness to Pay (MWTP) - ANS-the maximum amount of money buyers in
the market are willing and able to give up in exchange for a small additional amount of
the good
Inverse Demand - ANS-the demand function rearranged such that P is expressed as a
function of Q^D
Customer Surplus (CS) - ANS-the welfare buyers receive from the market outcome
Total willingness to sell (TWTS) - ANS-the minimum amount of money sellers are willing
and able to accept n exchange for Q units
Marginal Willingness o sell (MWTS) - ANS-the minimum amount sellers are willing and
able to accept for a small additional amount
Short Run - ANS-the horizon over which capital is fixed, but labor is variable
Long Run - ANS-the horizon over which K and L are variable
Marginal product of labor(MPL) - ANS-the relative change in output the firm will get if
they employ a small additional amount of labor, holding K fixed
Fixed Costs - ANS-Costs that do not vary with the quantity of output produced
variable costs - ANS-costs that vary with the quantity of output produced
Marginal Cost (MC) - ANS-the relative change in total cost to the firm from producing a
small additional amount
economies of scale - ANS-factors that cause a producer's average cost per unit to fall
as output rises
Willingness to Pay (WTP) - ANS-the maximum amount that a buyer will pay for a good
total willingness to pay (TWTP) - ANS-the maximum amount of money that buyers in a
market are willing and able to give up the index change for Q units of the good
Marginal Willingness to Pay (MWTP) - ANS-the maximum amount of money buyers in
the market are willing and able to give up in exchange for a small additional amount of
the good
Inverse Demand - ANS-the demand function rearranged such that P is expressed as a
function of Q^D
Customer Surplus (CS) - ANS-the welfare buyers receive from the market outcome
Total willingness to sell (TWTS) - ANS-the minimum amount of money sellers are willing
and able to accept n exchange for Q units
Marginal Willingness o sell (MWTS) - ANS-the minimum amount sellers are willing and
able to accept for a small additional amount
Short Run - ANS-the horizon over which capital is fixed, but labor is variable
Long Run - ANS-the horizon over which K and L are variable
Marginal product of labor(MPL) - ANS-the relative change in output the firm will get if
they employ a small additional amount of labor, holding K fixed
Fixed Costs - ANS-Costs that do not vary with the quantity of output produced
variable costs - ANS-costs that vary with the quantity of output produced
Marginal Cost (MC) - ANS-the relative change in total cost to the firm from producing a
small additional amount
economies of scale - ANS-factors that cause a producer's average cost per unit to fall
as output rises
