Analysis of the enterprise
Technology
1) Tecnologia:
He is the directory of the realizable plans of production.
2) Factors produttivi:
They are input of the production that is historically : terra lavoro capitale the raw materials
3) Assets capitali:
They are those input that same produced assets are they, are distinguished in understood them physicist and understood them financial.
4) With of produzione:
It is with of all the combinations of input and output technically realizable.
5) Function of production :
It is the frontier of with of production, characterizes the maximum level of output that it can be obtained employing a data level of input.
6) Isoquanto :
It is with of all the possible combinations of input the 1 and 2 exactly sufficient ones to produce one given amount of output.
7) Property of the technology :
to) monotone increasing the q.ta of input pu² not obtaining a output inferior to the previous one
b) convesse if we have 2 techniques of production in a position to then producing q.ta y also one they combinazione is in a position to producing the same one q.ta y.
8) marginal Product of factor 1:
Draft of the variation of the product in correspondence of one unitary variation of factor 1. It is equivalent to the derivative regarding the same factor of the production function.
9) technical Test of substitution :
It is the test to which the enterprise must replace a
input with an other in order to maintain to constant the level of the
output. He is equal to the inclination of isoquanto. the
The equation is obtained placing Dy = 0 con Dy = MP1 * Dx1 2 MP * Dx2 .
10) Law of the decreasing marginal productivity :
It asserts that the marginal product of a factor diminishes when if of they employ increasing amounts gradually.
11) Short and long period:
Short period is considered that one in which some factors they are fixed to levels predetermines to you while others are free to vary. It is considered instead along period that one in which all the factors they can vary.
12) Rendering of constant scale:
Doubling the amount of every input, double amount of output. f(t x is produced one1 , t x2) = t f(x1 , x2)
13) Relation between rendering of scale and marginal productivity of the factors:
The scale rendering describes that that happens when all the factors of input are increased while the marginal productivity describes that that happens when one of the factors of input is only increased leaving invariati the others.
14) fixed Factor:
It is a productive factor of which the enterprise it must support the cost even if it decides of having a output null. A classic example is the rent of the shed.
Massimizzazione of the profit
15) Cost opportunity:
It means that as an example the value of the job of the owner of the company must be calculated because it loses the opportunity to offer it to other companies.
16) Profit:
It is the difference between the revenues and costi. the
17) Condition for the massimizzazione of the profit:
The value of the marginal product must be equal to the price of the factor, equal relation that is gained deriving the profit regarding factorx 1 and therefore placing to 0. In short it is equivalent to characterize the point of ceiling between the function of production and the straight one of isoprofitto higher.
18) Thing changes between massimizzazione of the profit in the short period and in along period:
In the short period the optimization is applied to the single factor that varies while in along period the optimization it goes applied to all the factors in how much for definition are free to vary.
19) Straight of isoprofitto:
They are straight that they describe the combinations of input and output that gives to place to a data profit.
20) Level of the profit of along period for one enterprise:
For an enterprise that works in conditions of competition to constant rendering of scale for all the levels of output, the reasonable solo level of profit in along period is 0. This because finche it will convene will enter other companies in the industry.
Minimizzazione of the costs
21) Function of cost:
C(w1 , w2, y) expresses the costs minimums necessary in order to produce y unit of output, when the prices of the factors are (w1, w2).
22) Condition for the minimizzazione of the costs:
You it must be ceiling between the isoquanto (with of all the possible combinations of the input sufficient to produce one given amount of output) and the curve of isocosto (with of all the combinations of input whose cost is C).
Where it is remembered that the slope of the isoquanto is obtained placing Dy = 0 = MP1 * Dx1 2 MP * Dx2 mind that one of the isocosto is obtained placing DC = w1*Dx1 w2 *Dx2 = 0.
23) Function of the average cost:
It is the unit cost of production of y unit of output
24) Function of cost of short period:
It is the minimal cost that must be supported in order to produce one given amount of output, varying the employment of the single variable factors.
25) Function of cost of along period:
It is the minimal cost that must be supported in order to produce one given amount of output, varying the employment of all the productive factors.
Curves of cost
26) Function of average cost:
AC(y) expresses the cost necessary in order to produce ciascuna unit of output, is the sum of the variable average costs and the fixed average costs.
27) Description of the curve of the average cost:
It is the sum of the curve of average costs fixed AFC which stretches to infinite for small amounts and of the curve of average costs variable AVC which stretch to infinite for great amounts, the curve is therefore one conca.
28) Curve of the marginal cost:
Measure the production cost of every unit adds them of
output 
, it is lower respect alla curve
goddesses average costs and to those goddesses variable average costs
to left del they minimum point while it is higher to right than such
minimum. Sooner or later the curve is increasing in how much the
fixed factors limits the production.
29) Curve of the marginal cost for 2 systems:
So that the division of the production between the two systems is optimal, the marginal cost of the output for the impianto1 must be equal to the marginal cost of the output for system 2.
30) Relation between the curve of cost of short period and the curve of cost of along period:
The curve of cost of along period is the inferior envelope of the curves of cost of short period. This because for every level of the output an optimal scale for produrlo will exist and the curves of cost of short and along period will have to coincide in correspondence of the optimal choices of the fixed factors.
Offer of the enterprise
31) Describe the ties that limit the production of one enterprise:
to) ties tecnologici only some combinations of input/output are realizable
b) ties of mercato the enterprise can only sell how much people is disposed to acquire
32) Describe the perfect competition:
A market is perfectly competitive if ciascuna enterprise assumes that the market price is independent from the amount that it decides to produce, the enterprise is that is price-taker.
33) Describe the curve of question for one competitive enterprise:
To greater prices of the market price the enterprise does not sell null, for an equal price at the price of market the enterprise can sell every amount of production while to inferior prices to the market prices the enterprise can adjudicate the entire question of market.
34) Which level of output produces one competitive enterprise:
As it is logical it will want to maximize profit therefore MR = MC but in competition the price is given therefore to MR = P therefore the enterprise produces an amount in correspondence of which the price equals the marginal costs.
35) Enounce the closing condition:
If the fixed costs F are greater of the profit that
derives producing then a sure one output y it convene to close that is
not to produce null continuing to support the fixed prices. The
condition is : - F = py - Cv - F from which 
is gained that is closes when the variable average costs are
greater of the price which for a competitive enterprise he is equal to
the marginal cost.
36) Describe the curve of offer of one competitive enterprise:
It corresponds to the increasing feature of the curve of the marginal cost that is found to of over of the curve of the variable average cost.
37) Difference between the curve of offer of one competitive enterprise in the short one and in along period:
In the short period the equality is between the variable average costs and the marginal cost while in along period the equality it is between the average costs and the marginal cost.
38) Describe the surplus of the producer:
Draft of the difference between the revenues and the variable costs, and can be calculated in 3 distinguished ways :
to) Difference between the area of the revenues and the area of the variable costs
b) Difference between the area of the revenues and the below area the curve of the marginal revenue that is equal to the variable costs
c) One combination of the modalities a) and b).
Offer of the industry
39) Describe the curve of offer of the industry or curve of the market offer:
Is one curve constituted from the sum of all the single curves of offer of the enterprises. The sum is horizontal in how much is the output to increase and not the price.
40) Difference between profit and surplus of the producer:
The profit is the difference between the revenues and the cost total while the surplus of the producer is the difference between the revenues and the variable cost.
41) In an industry to entrance freedom which are the profits in along period:
The profits are null in how much sin when there will be possibility to obtain a profit will be new enterprises that will enter in the industry, therefore in the long term the profit stretches to null being.
The curve of offer of the industry in along period is therefore one straight horizontal in correspondence of a lessened equal price of the average cost.
42) economic Unearned income:
Draft of the remunerazione of a productive factor that exceeds that necessary minim for disporne.
43) Which maximum of present enterprises in one industry with entrance freedom is the number:
It is the n° maximum compatible with profits not denied, is obtained to you equaling the question to the offer of the industry considering the price that renders the profit null. Alternatively it can be gained from the function of inverse question of famous market that is the market price and the amount produced from ciascuna enterprise. They find the price of closing of along period and the correspondent amount and they are replaced in the question curve where Y = ny and therefore is gained n.
44) Like gaining the n° of present enterprises if it changes the question:
It is necessary to equal the curve of market question and the curve of offer of the industry and to see the price that it gushes some varying the n° of enterprises and making attention that the price is not inferior to that one of closing.
Monopoly
45) Monopoly:
The monopoly has itself when is one industry constituted from one single enterprise.
46) Describe the relation that maximizes the profit for one monopolistic enterprise:
that in truth it is the same valid relation for a competitive enterprise for which but the question curve is flat and therefore to infinite elasticity from which it follows that MR(y) = p(y) that is that the marginal revenue is equal to the price. You notice yourself that for a monopolistic enterprise instead the elasticity it is not infinite.
47) Describe inefficiency of the monopoly:
The monopoly is inefficient in how much not Pareto-Efficiente in fact if we choose a advanced price to the marginal cost, the monopolistic enterprise earns us and also the consumer inasmuch as it would be disposed to pay the corresponding price on the curve of inverse question that is higher.
48) efficient Level of output:
It is the level of output in correspondence of which the availability to pay an unit adds them of output is equal to the necessary cost for produrla.
49) Net loss of monopoly:
It is the worsening of the situation for who must pay the monopoly price rather than that one of competition. It turns out to be the sum of 2 areas :
B = surplus of the consumer for the units adds them hour in sale
C = Increase of the surplus of the producer for unit sale adds them
the area To represents instead a transfer of surplus from the monopolista the consumer.
50) Licence:
Draft of a monopoly limited in the time and having the scope to help the technological innovation guaranteeing who invests in search a time of uses monopolistic of its invention. The duration of the monopoly is a compromise between favoring the search and limiting inefficiency of the monopoly.
51) natural Monopoly:
The natural monopoly has itself when an enterprise of elevated social value and that therefore cannot close, present elevates fixed costs to you and low marginal costs, in this case it will have or to receive of the subsidies the state or will have to sell to a cost higher one inefficient amount.
Monopolistic behavior
52) Scope of the discrimination of the prices:
To concur with the monopolista to produce and to sell more.
53) Discrimination of the prices of first degree:
Every unit is sold to that consumer who attributes the higher value to them, to the maximum price to which costui it is disposed to acquire it. It is the case of the doctor who ago to pay to the patient second its availabilities.
54) Discrimination of the prices of second degree:
The unit price of the output is not constant but it depends on the acquired amount. It is the case of the sale R-all'.ingrosso.
55) Discrimination of the prices of third degree:
The monopolista sells its product to various persons to prices various, but every unit of the good sold to a sure group of purchasers comes sold to the same price. It is the old case of the price of the ticket to the variable cinema for adults, children or.
56) Like determining the price that the monopolistic enterprise must apply in every market in which work:
The price is given in every single market from the equality between the marginal revenue and the marginal cost.
57) Rate in 2 parts:
The example is that one of the Luna Park in which there is a price for the access ticket and a price for I use it of the giostra, the corrected formulation of these prices optimizes the profits of the enterprise. The entrance rate must be equal to the surplus of the consumer and the rate of the turn in ottovolante must be equal to the marginal cost, single therefore the owner of the Luna Park succeeds to absorb all the surplus of the consumer.
58) monopolistic Competition:
Monopolistic competition is had when ideazione ties place an enterprise in monopoly conditions, however the other enterprises can produce and sell produced similar giving to place to one competition.
59) Like varied the curve of question of one enterprise that operates in conditions di monopolistic competition with the income of new enterprises:
It is moved on the left in how much them it will be demanded a smaller amount of output and becomes more elastic that is in how much one horizontal small variation of price can move customers from one company to an other.
60) As the point of equilibrium of one is determined enterprise that operates in monopolistic competition:
The point of equilibrium for an economic system is always that one for which null profits are had, the equilibrium condition is therefore that one that sees the tangent to the average costs (derived) equal to the slope of the straight one of question which can vary in case of income of new enterprises.
Market of the factors
61) Monopsony:
While in the monopoly there is an only producer, in the monopsony there is an only purchaser
62) Describe the monopolies to goes them and to mount:
It is the case in which the good produced from a monopolista it is employed like factor of production from an other monopolista.
Oligopoly
63) Oligopoly:
It is a shape of market to half between the monopoly and the competition, where that is there is a limited number of concurrent enterprises which are aware of being able to influence on the prices.
64) Leader of price and follower of price:
In the case of a duopoly price leader it is the enterprise that fixed the price before the other which he will be called follower of price. In analogous way in the case that the duopoly decides to act on the amount.
65) Equilibrium of Cournot:
In an equilibrium of Cournot, every enterprise maximizes the profit, dates the expectations of ciascuna approximately the choice of output of the other. Moreover, such expectations are come true in equilibrium : the optimal choice of output of ciascuna enterprise is equal to that the other expects.
66) Like determining the functions of reaction for the equilibrium of Cournot:
The profits of ciascuna enterprise must be maximized assuming that the produced amount is that total of the 2 companies, after which it is necessary to write the amount produced from ciascuna company in terms of that one produced from the other company.
67) Like determining the equilibrium of Cournot:
It is given from the intersection between 2 functions of reaction.
68) In that conditions the equilibrium of Cournot is applied:
It is reported to a duopoly in which a leader does not exist and follower but enterprises must carry out their choices at the same time.
Structures of market
69) Possible structures of market:
to) Pure competition
b) Pure monopoly
c) monopolistic Competition with differentiation of the products
d) Monopsony
and) Monopoly with prices discriminates to you
f) bilateral Monopoly
g) Duopoly
h) Oligopoly
70) basic Characteristics of the discriminating monopoly:
to) the marginal revenue the enterprise must be equal in all the markets in which operates
b) the market must be subdivided in segments very separates waves to you to avoid that a product sold to a data price on a market trafughi towards a market where it has a higher price.
71) Describe the regimen of oligopoly:
It is a shape of market to half between the monopoly and the competition, where that is there is a limited number of concurrent enterprises which are aware of being able to influence on the prices. They will be able to decide to put themselves of agreement or a competition is made pitiless, is alone in this type of market structure that has sense the publicity, in fact one imposing advertising campaign can embezzle customers to the competition.
72) Typology of behavior of the companies in regimen of oligopoly:
to) Ignoring the interdependence that is taking decisions not thinking which it could be the reaction of the competition.
b) To preview the contromanovre of the competitors and to base the own decision also on that it could be their reaction.
c) To prepare itself against the optimal movements of the competitors.
73) Describe the curve of question broken of the oligopoly:
The curve of broken question is the explanation to because in regimen of oligopoly the prices are substantially stable and at least not strong tendency to the decrease is one, it derives from the 2 following considerations :
to) If the enterprise reduces the price, you avail again will become account of the escape of the customers therefore will reduce also they immediately the price and therefore the question curve will remain inelastic that is to one small variation of the price corresponds one small variation of the asked amount.
b) If the enterprise increases the price, the concurrent enterprises will be very happy for leaving their prices unchanged and to receive the new customers therefore the feature of the question curve will be elastic that is to one small variation of the price corresponds one elevated variation of the amount.
After all therefore to the enterprise it convene to leave the price therefore com' is.
74) Describe the bilateral monopoly:
The presence of a single vendor and a single purchaser is assumed, in order to determine the prices to which can be carried out the exchange, the curves of indifference of the money in function of the good for both are traced the subjects and they gather in an only diagram.
75) Curve of contracts:
It is the place of the points of ceiling between the curves of indifference of the vendor and those of the buyer. In the inner zone to the two curves of indifference exchanges and along the line of contracts only can only happen.
