### possession | expenditure | price:

Marginal cost
* is always the concept of cost most important for the allocation of resources
  - how much cost goes up from making one more
  - the additional cost incurred in producing one more unit of output
* is the additional cost of producing one more
* is the change in cost resulting from increasing output by one more unit
  - the total cost for producing one more unit
* is the change in total cost due to a unit change in output
  - resulting from a one-unit change in output
  - resulting from an action
  - concept to use when considering changes
* is the cost of a given unit, say the sixth unit or the seventh
  - adding or subtracting one unit of output
  - difference in total cost between one rate of output and another
  - price of sending the next piece of mail
* is the slope of the total cost curve
  - variable cost curve
* represents the addition to cost for each additional unit of output.
* shows the additional cost of producing one more unit of output.

Monthly price
* are the averages of all prices during the month.
* gives an overview of a month's average prices.

### possession | expenditure | price:

Oil price
* adjust to ration demand if stocks are high.
* are an important inflation factor in a small economy strongly dependent on oil imports
  - primarily responsible for the higher inflation
  - sensitive to small changes
  - very unstable when they're too high or too low
* effect the cost of everything.
* have the power to produce a ripple effect across the American economy.
* key factor in determining when production becomes economic.
* relate directly to foreign policy and national defense.

Price control
* are limits imposed on the amounts that can be charged for certain goods or services.
* destroy wealth because they deter some wealth creating transactions from occuring.
* form of public theft.
* have a centuries-old track record of causing shortages in countries around the world.
* is control
  - the nuclear bomb of government intervention
* limit the burden of high prices.
* tend to become a vehicle for health care rationing.

Spot price
* are prices.
* mean today's prices fixed on major exchanges.
* rise when inventories fall and decline when inventories return to normal levels.

Stable price
* help create jobs and raise incomes.
* mean profits for manufacturers and investors in memory companies.
* result in low inflation, which has been historically favorable to stock prices.

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Stock price
* are a function of dividends and future prices as well as the interest rate
  - measure of market expectations
  - also subject to both general economic and industry-specific market factors
  - monetary values
  - simply the response of buyers and sellers to information about public companies
* can be extremely volatile, especially technology stocks.
* change constantly because there are millions of transactions going on at the same time.
* do represent the real cost of buying a company.
* escalate when enough investors start buying stocks again.
* fluctuate and can result in capital gains or losses.
* go up when interest rates go down, and fall when interest rates go up.
* have a tendency to go up as interest rates go down.
* is determined by discounting future dividends.
* mint fortunes at the speed of a mouse click.
* move rapidly on greed and fear, and tend to crash faster than they rise.
* represent the present value of future cash flows.
* respond immediately to events in the industry or world.
* rise because the value of the companies they represent rises
  - when inflation and interest rates go down and earnings go up
* show parts of a dollar as fractions.
* tend to be driven by earnings growth
* track earnings.

Unit price
* is the cost of one of a particular item.
* particular rate that compares a price to some unit of measure.
* refers to the unit price consistent with the measurement unit.