11/1 notes

Question 1

what makes something profittable

Answer 1

willingness to pay/desire to buy things, which is reflected by price

Question 2

firms market power in perfect competition

Answer 2

they have no market power

Question 3

amount of firms in perfect compeitition

Answer 3

lots of firms

Question 4

products sold in perfect competition are

Answer 4

identical products

Question 5

barriers in perfect competition

Answer 5

no barriers, free entry, free exit into markets

Question 6

perfect competition has _____ ________ behavior, where does price come from

Answer 6

price taking behavior
-price comes from something outside the firm

Question 7

market power is

Answer 7

the ability to influence price

Question 8

what type of market has MAX ability to influence price

Answer 8

monopoly

Question 9

what type of market has high ability to influence price

Answer 9

olgopoly

Question 10

what market has low ability to influence price

Answer 10

imperfect competition

Question 11

imperfect competition exists

Answer 11

exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical perfect competition.

Question 12

ologopoly is

Answer 12

a type of market structure that exists within an economy. In an oligopoly, there is a small number of firms that control the market.

Question 13

monopoly is

Answer 13

defined as a single seller or producer that excludes competition from providing the same product

Question 14

what is marginal revenue

Answer 14

increase in revenue that results from sale of one additional unit of output

Question 15

what is Q on a graph

Answer 15

market level

Question 16

what is q on a graph

Answer 16

particular firm

Question 17

what are firms looking for (represented on a graph)

Answer 17

when MC intersects P

Question 18

What is price equal to on a long-run graph

Answer 18

P