L16-17 Flashcards
1
Q
Price taker
A
when a firm has no ability to increase market price. A firm can sell whatever quantity it wants at market price but no matter how much it produces it can’t influence market price. Likely to occur when homogenous products, asymmetric info, can trade, free entry
2
Q
A
3
Q
A
4
Q
Shutdown rule LR
A
p < AC
5
Q
Shutdown rule SR
A
p < AVC
6
Q
A
7
Q
A
8
Q
A
9
Q
A
10
Q
A
11
Q
A
12
Q
A
13
Q
A
14
Q
A
