Chapter 14 Flashcards
1
Q
Competitive market
A
Many buyers and sellers that have no real impact on market price. Buyers and sellers are price takers
2
Q
Average revenue
A
Total revenue / quantity sold
3
Q
Marginal revenue
A
Change in total revenue from additional unit sold
4
Q
Sunk cost
A
A cost that can not be recovered
5
Q
Shutdown
A
Short-run decision to temporarily stop production for a specific period of time
6
Q
Exit
A
Long-run decision to exit the market
