Details Title: Ch.7 Definitions Description: Cards to make Economics easier Total Flash Cards: 19 Created: 11/11/2008 16:45:51		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Pure Competition Definition A very large number of firms producing a standardized product Term Monopolistic Competition Definition large number of sellers producing differentiated products (clothing, furniture, books) Term Nonprice competition Definition when one firm tries to distinguish its product or service from all competing products Term Oligopoly Definition only a few number of sellers of a differentiated product, so each firm is affected by the decisions of its rivals and must take those decisions into account in determining its own price and output Term differentiated products Definition a product that differs in some other way from the similar products produced by other firms, a product such that buyers are not indifferent to the seller when the price charged by all sellers is the same. Term indifferent Definition not making a difference Term pure monopoly Definition market structure in which one firm is the sole seller of a product Term "price taker" Definition a competetice firm that cannaot change the market prices, but can only accept it as "given" and adjust to it. Term Very large numbers Definition presence in a purely competitive market of a large number of independently acting sellers, offering products in large national as well as international markets. Term standardized product Definition purely competetive firms produce a standardized(identiacal or Homogeneous) product. Term Free entry and exit Definition new firms can freely enter and existing firms can freely leave purely competitive industries. Term meaningful starting point for any discussion of how prices and output are determined. Definition purely competition Term ---------- are price takers not price makers. Definition pure competitors Term average revenue Definition Total revenue from the sale of a product divided by the quantity of the product sold. also it is equal to price. Term total revenue Definition the total number of dollars received by a firm from the sale of a product Term the change in total revenue that results from selling 1 more unit of a firms's product Definition marginal revenue, also it is equal to price in pure competition Term variable resources Definition materials labor Term the rule applies only if producing is preferable to shutting down. applies to what? Definition marginal revenue Term the profit-maximizing guide is known as Definition the MR=MC rule