acquisition costs
the costs of acquiring title
to an asset, measured by the difference between the original
price and the immediate resale value
advalorem tax
a tax that encourages
retailers to separate the components of a good so that they can
be sold separately in order to reduce the tax payment
all-or-nothing
demand curve
a curve showing the maximum
amount that a consumer is willing to pay for an extra unit of a
good, given that the consumer has to take all of the units at
that price or have none of them
all-or-nothing
pricing
a means of extracting the
consumer's surplus by denying the consumer the choice of how much
of a good to purchase; the consumer must either buy the whole
package or none at all
allocative
inefficiency of monopoly
in the case of monpoly output,
price is greater than marginal cost, meaning that ocnsuers pay an
amount for th elast unit that exceeds the opportunity cost of
producing it
arc elasticity
elasticity measured over a
finite interval of the demand curve
assumption
something that plays a vital
role in constructing a theory; it is used to derive hypotheses
and sets the confines within which a theory operates
average cost
the total cost divided by the
amount of output
average product
the total product divided by
the number of varible factors used
average revenue
the total revenue divided by
the number of units of a good sold
average use
value
the total use value divided by
the number of units of a good