Term
| excess capacity, efficiency scale |
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Definition
A firm has ____________ if it produces
less than its _________ , which is the quantity at which average total cost is a minimum—the quantity at the bottom of the U-shaped ATC curve. |
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Term
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Definition
| A firm’s _______ is the amount by which price exceeds marginal cost. |
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Term
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Definition
________ is a market structure in which:
■ A large number of firms compete.
■ Each firm produces a differentiated product.
■ Firms compete on product quality, price, and marketing.
■ Firms are free to enter and exit the industry. |
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Term
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Definition
| A firm practises _______ if it makes a product that is slightly different from the products of competing firms. |
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Term
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Definition
| A ________ is an action taken by an informed person (or firm) to send a message to uninformed people. |
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