Microeconomics Concepts

1. Also known as a noncooperative equilibrium, is the result when each player in a game chooses the action that maximizes his or her payoff, given the actions of other players.
3. When they cooperate to raise their joint profits
6. total revenue minus the explicit cost and depreciation
8. When long-run average total cost declines as output increases
9. Individuals have no incentive to pay for their own consumption and instead will consumer without payments.
11. when resources are deployed to produce just the right amount of each product to satisfy society's wants

2. A labor market in which there is only one firm hiring labor（wage-maker）
3. diagram that shows how households and firms are related by the exchange of resources and products
4. Price is lower than minimum average variable cost
5. It is a benefit that an individual or firm confers on others without receiving compensation.
7. It is an economic profit just high enough to keep a firm engaged in its current activity
10. How sensitive consumers and producers are to changes in price