Pareto Efficiency - the optimal arrangement - when you couldn’t get more noms for anyone without taking away noms from someone else
Perfect Complements - if you can think of two foods that you only like together, like macaroni and cheese, then they are perfect compliments because they are only valuable in combination
Production Function - tells you how to combine ingredients to make more noms
Profit - what you earn from selling noms minus the cost of baking
Help us expand our vocabulary! If you have a good defi-nom-tion of an econ word, please email email@example.com or reply to this post below. Include your word and definition and also your name and/or institution or webiste that you would like credited.
A made-up example submission:
Trust – if you believe someone who promises you noms will deliver on their promise
by John Hsu, University of Maryland