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14 Cards in this Set
- Front
- Back
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Perfectly Competitive Market |
Meets conditions: - Many buyers and sellers. - All firms sell identical products. - No barriers to enter the market. |
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Price Taker |
- A buyer or seller who is unable to affect the market price. |
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Average revenue |
Total revenue divided from selling one more unit of a product. |
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Sunk cost |
-A cost that has already been paid and cannot be recovered. |
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Shutdown Point |
- The minimum point on a firms average variable cost curve; if the price falls below this point the firm will shut down production in the short run. |
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Economic Profit |
- A firms revenues minus all its costs, implicit and explicit. |
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Economic Loss |
A situation in which a firms total revenue is less than its total cost, including all implicit costs. |
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Long-run competitive equilibrium |
The situation in which the entry and exit of firms has resulted in the typical firm breaking even. |
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Long-run supply curve |
- A curve that shows the relationship I the long run between market price and the quantity supplied. |
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Productive efficiency |
The situation in which a good or service is produced at the lowest possible cost. |
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Allocative efficiency |
A state of economy where consumer preferences represents production. |
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Monopolistic competitive |
- A market structure with small barriers of entry, with many firms competing with similar not identical products. |
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Marketing |
- All the activities necessary for a firm to sell a product to a consumer. |
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Brand management |
The actions of a firm intended to maintain the differentiation of a product over time. |
