Term
| Perfectly Competitive Market |
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Definition
| A market that meets the conditions of (1) many buyers and sellers,(2) all firms selling identical products, and (3) no barriers to new firms entering the market. |
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Definition
| A buyer or seller that is unable to affect the market price. |
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Definition
| Total Revenue divided by the quantity of the product sold. |
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Definition
| Change in total revenue from selling one more unit of a product. |
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Definition
| The point at which the difference between TR and TC is the greatest. |
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Definition
| A cost that has already been paid and that cannot be removed. |
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Definition
| The minimum point on a firm's average variable cost curve; if the price falls below this point, the firm shuts down production in the short run. |
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Definition
| A firm's revenues minus all its cost, implicit and explicit. |
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Definition
| The situation in which a firm's total revenue is less than its total cost, including all implicit costs. |
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Term
| Long-run Competitive Equilibrium |
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Definition
| The situation in which the entry and exit of firms has resulted in the typical firm breaking even. |
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Definition
| A curve that shows the relationship in the long run between market price and quantity supplied. |
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Term
| Increasing-cost Industries |
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Definition
| Industries with an upward sloping long-run supply curve. |
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Term
| Decreasing-cost Industries |
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Definition
| Industries with downward sloping supply curves. |
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Definition
| The situation in which a good or service is produced at the lowest possible cost. |
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Definition
| A State of the economy in which production represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it. |
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