Monopolistic competitors do not enjoy the ________ demand of perfect competition. As a result, firms will never produce at ________ average total cost.

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A command system is a mtheod of coordinating a firm productive resources that uses a managerial hierarchy.

Transaction cost: cost to the firm arising from reaching agreements on input prices with suppliers and then ensuring the terms of agreements are fulfilled.

Economies of scopes are cost reductions achieved by the production of multiple, related products.

Economic depreciation is the change in the market value of capital over a given period.

Real income: the income expressed as a quantity of goods the household can afford to buy.

Pirce effect: the effect of a change in the price of a good on the quantity of the good consumed .

Income effect: the effect of a change in income on buying plan.

the substitution effect is the effect a of a change in price on the quantity bought. When the consumer remains on the same indifference curve.

Bounded rationality is a rationality that is limited by the computing power of human brain.

Bounded willpower: is the less than perfect willpower that prevent us from making a decision.

Bounded self interest is the limited self interest that results in sometimes suppressing our own interest to help others.

Neuroeconomics is thr study of the activity of the human brain when a person makes an ecoomic decision.

Perfect competition: many sellers offer and identical product to many buyers and entry is free.

Monopolistic: many sellers offer slightly different prodcuts to many buyers and entry is free.

oligopoly: a small numbers of sellers compete and barriers to entry limit the number of firms.

Monopoly: one firm produces and item and has no close substitutes and the firm is protected by a barrier to entry that prevents the entry of competitors.

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