Economics, 3rd Edition

concentration ratio 

the proportion of total market share 

accounted for by a particular number of firms

constant returns to scale 

the property whereby long-run 

average total cost stays the same as the quantity of output 

changes

consumer prices index 

a measure of the overall prices of the 

goods and services bought by a typical consumer

consumer surplus 

a buyer’s willingness to pay minus the 

amount the buyer actually pays

consumption 

spending by households on goods and services, 

with the exception of purchases of new housing

contraction 

when real output is lower than the previous time 

period

copyright 

the right of an individual or organization to own things 

they create in the same way as a physical object to prevent 

others from copying or reproducing the creation

cost 

the value of everything a seller must give up to produce a 

good