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| occurs when an industry is made up of many small firms producing homogeneous products |
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| a firm in a perfect competition market that has no choice but to accept the price that has been determined in the market |
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| expenses that change as output levels change |
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| shows the different quantities of output that the firm would be willing to supply at different possible prices |
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| Supply curve of the industry |
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| shows the different quantities of output that the industry would supply at different possible prices |
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| Total Revenues – Total Explicit and Implicit Costs; or Accounting Profit – Opportunity cost |
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| An industry in which advantages of large-scale production make it possible for a firm to produce the entire output of the market at lower average cost |
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| An industry in which there is only one supplier of a product; the product has no substitutes; it is very difficult (impossible) for another firms to coexist |
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| Any excess of the profits earned by a monopoly above those that would be earned if the industry were perfectly competitive |
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| Attributes of a market that make it more difficult or expensive for a new firm to open |
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| The sale of a given product at different prices to different customers (no differences in cost of supplying these customers); also if it costs more to supply one customer over the other, but they are charged the same price |
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| A privilege granted to an inventor (individual or firm) that for a specified period of time prohibits anyone else from producing or using that invention without permission |
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| 6 characteristics that define markets |
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Definition
- Number of firms
- Level of price control
- Product differentiation
- Barriers to entry/exit for other firms
- Level of market impact
- Relative size of firms
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Definition
- One firm
- Price makers
- Unique product
- Impossible for other to enter/exit
- Total market control
- Large (market)
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Term
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Definition
- Few firms
- Significant price control
- Differentiated product
- Difficult for others to enter/exit
- Significant market power
- Fairly large (market)
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Definition
- Many firms
- Littel price control
- Standardized product
- Few barriers for other
- Littel market control
- Smaller (market)
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