11/8 notes Flashcards
1
Q
laissez faire
A
government is hands-off in terms of economy
2
Q
price too low =
A
a lot of loss
3
Q
higher price =
A
profit
4
Q
when price = atc+mc
A
long run equilibrium
-no entry/exit perfect competition
5
Q
imperfect competition
A
-lots of firms
-different products, but has close substitutes
-no barriers, firms enter and exit
6
Q
how do we represent market power
A
-firms pick a price that they sell at
-firms in markets sell for similar prices
7
Q
why does price change in perfect competition
A
because of output
8
Q
market share
A
percent of total sales in an industry generated by a particular company
9
Q
what does no barriers mean
A
means in long run there will be zero profit in market
