Economics 12/1 Flashcards
All participants are price takers, you can enter and exit without barriers, everything is perfectly equal.
Perfection Competition
A market with different prices, products, services, and are protected by barriers entry and exit.
Imperfect Competition (monoply, oligopoly, monopolistic competition)
A form of marketing that designs only one message for its entire audience.
Undifferentiated Markets
A strategy using 2+ segments to target an audience.
Differentiated Markets
The amount that will result in the highest possible profit.
Profit Maximizing Quantity
Cost that does not depend on the quantity of the output produced.
Fixed Costs
Cost that depends on the quantity of output produced. (electricity, land, water, etc)
Variable Costs
The sum of fixed and variable cost of producing a quantity of output.
Total Costs
The cost added by producing one additional unit of a product or service.
Marginal Costs
Change in total revenue generated by an additional unit of output.
Marginal Revenue
The time period where at least one input is fixed.
Short Run
The time period where all inputs can be varied (all variable).
Long Run
Lacks influence to make their own price, has to accept prevailing prices in the market.
Price Taker
0 profit, just enough to keep firm engaged.
Normal Profit
No benefit in continuing operations, decides to shut down.
Shut Down Point
