Perfect Competition Flashcards
1
Q
profit
A
the difference between total revenue and total cost
2
Q
market structure
A
the number and relative size of firms in an industry
3
Q
perfect competition
A
a market in which no buyer or seller has market power
4
Q
monopolistic competition
A
many firms, a little market power
5
Q
oligopoly
A
a few firms, considerable market power
6
Q
duopoly
A
two firms
7
Q
monopoly
A
one firm only
8
Q
horizontal
A
because the firm is a price taker. It will charge only the market price
9
Q
perfect competition is
A
easy to enter or exit industry
10
Q
product revenues
A
only way a firm can influence revenues is by varying the amount it produces
11
Q
marginal revenue=
A
price
12
Q
short run
A
firm has fixed plant and maximizes profits or minimizes losses by adjusting output
