Term
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Definition
| A market with many buyers and sellers trading identical products so that each buyer and seller is a price taker. |
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Term
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Definition
Total revenue divided by the quantity sold
TR/Q sold
AR = Price of good |
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Term
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Definition
The change in total revenue from an additional unit sold.
MR = Price |
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Term
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Definition
A short-run decision not to produce anything during a specific period of time because of current market conditions.
Still have to pay fixed costs. |
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Term
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Definition
A long-run decision to leave the market.
No longer have to pay any costs, variable or fixed. |
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Term
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Definition
A cost that has already been committed and cannot be recovered.
Ignored in making decisions. |
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