Term
| the increase in total revenue when output sold goes up by one unit |
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Definition
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Term
| what is left over from total revenue after a firm has paid all of its explicit cost |
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Definition
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Term
| what is left over from accounting profits after a firm has subtracted its implicit cost |
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Definition
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Term
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Definition
| Profit Maximization Point |
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Term
| A firm with a perfectly elastic demand curve has an |
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Definition
| identical MR curve (MR = P) |
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Term
| We say that a firm is operating at peak efficiency if |
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Definition
| its average total cost (ATC) is held to a minimum. |
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Term
| When do firms ultimately push down profits to the break-even point |
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Definition
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Term
| What is the cost of doing business |
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Definition
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Term
| What is a firm’s opportunity cost |
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Definition
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Term
| Why stay in business if your economic profits are zero? |
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Definition
| You are still making accounting profits |
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Term
| What is the definition of Perfect Competition |
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Definition
| The market has perfect mobility and Perfect knowledge about the market exist |
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Term
| What is the definition of Perfect Competition |
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Definition
| The market has perfect mobility and Perfect knowledge about the market exist |
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Term
| Monopoly is the first of three types of |
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Definition
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Term
| The distinguishing characteristic of imperfect competition is that the firm’s demand curve |
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Definition
| slopes downward to the right |
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Term
| How much output does a monopoly produce in an industry |
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Definition
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Term
| what are some Barriers to Entry |
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Definition
| Economies of scale and legal barriers |
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Term
| what are some Limits to Monopoly Power |
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Definition
| the government or from the market itself |
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Term
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Definition
| Typically, heavy industry - iron, steel, copper, aluminum, and automobiles - |
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Term
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Definition
| Monopolies tend to be inefficient because they do not produce at the minimum point on their ATC |
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