Term
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Definition
| buyer or seller unable to affect market price |
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Definition
| total revenue minus total cost |
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Definition
| total revenue divided by the quantity of the prouct sold |
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Definition
| the change in total revenue from selling one more unit of a product |
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Definition
| cost already paid and cannot be recovered |
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Term
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Definition
| minimum point on a firms average total variable cost curve-if the proce falls below this point, the firm must shut down production in the short-run |
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Definition
| a firms revenue minus all costs(implicit and explicit) |
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Term
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Definition
| when a firms total costs outweights the total revenue |
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Term
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Definition
| when a good or service is produced at the lowest possible cost |
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Term
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Definition
| when production represents consumer preferences |
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Term
| monopolisitic competition |
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Definition
| when the barriers to entry are low and firms compete by selling products that are similar but not identical |
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Term
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Definition
| all activities necessary for a firm to sell a product to a customer |
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Term
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Definition
| actions of a firm intended to maintain product differentitation over time |
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Term
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Definition
| a market structure in which small interdepenednt firms compete |
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Term
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Definition
| anything that keeps a firm from entering an industry in which others entering are earning economic profit |
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Term
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Definition
| exclusive right to a product for a period of 20 years from the date the patent is filed with government |
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Term
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Definition
| the study of how people make decisions in situations in which attaining goals depends on interaction with others |
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Term
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Definition
| actions that firms take to achieve a goal |
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Term
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Definition
| a table that shows the possible payoffs for a firm as a result of every possible combination of strategies (guides the decision making process) |
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Term
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Definition
| agreement among the firms to charge the same price or otherwise not compete |
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Term
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Definition
| a strategy that is best for a firm no matter what strategy other firms use |
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Term
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Definition
| when a firm chooses the best strategy given thatstrategies choses by other firms |
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Term
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Definition
| when firms choose to cooperate in order to increase mutual payoff |
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Term
| non-cooperative equilibrium |
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Definition
| when a firm chooses not to cooperate and pursue their own self-interests |
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Term
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Definition
| when one firm in an oligopoly announces a change in price and other firms match the change |
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Term
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Definition
| a group of firms that agree to restrict output in a bid to drive prices up and increase profits |
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