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Definition
| the difference between total revenues and total industry |
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Definition
| the opportunity cost of capital: zero economic profit |
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Definition
| the number of and relative size of firm in an industry |
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Definition
| a market in which no buyer or seller has market power |
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Term
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Definition
| the ability to alter the market price of a good or service |
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Term
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Definition
| a firm without market power, with no ability to alter the market price of the goods it produces |
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Term
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Definition
| the selection of the short-run rate of output - coordinating firms, plants to obtain profit maximization. |
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Term
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Definition
| the period in which the quantity (and quality) of some inputs can't be changed |
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Term
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Definition
| the increase in total cost associated with a one unit increase in production |
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Term
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Definition
| the change in total revenue that results from 1 unit increase in the quantity sold |
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Term
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Definition
| produce at that rate of output where MR = MC |
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Term
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Definition
| the rate of output where price equals minimum AVC |
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Term
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Definition
| the decision to build, buy, or lease plant and equipment; to enter or exit an industry |
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Term
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Definition
| a period of time long enough for all inputs to be varied (no fixed costs) |
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Term
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Definition
| the price at which the quality of a good demanded in a given time period equals the quantity supplied |
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Term
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Definition
| the total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period |
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Term
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Definition
| barriers that make it difficult or impossible for would be producers to enter a particular market |
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Term
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Definition
| total cost divided by the quantity produced in a given time period |
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Term
| Short-Run Competitive Equilibrium |
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Definition
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Term
| Long-Run Competitive Equilibrium |
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Definition
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Term
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Definition
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Term
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Definition
| reduce production or exit industry |
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Term
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Definition
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Term
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Definition
| the use of market prices and sales to signal desired output (of resource allocation) |
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Term
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Definition
| reductions in minimum average costs that come through increases in the size (scale) of plant; equipment |
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Term
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Definition
| the offer (supply) of goods at prices equal to marginal cost-competitive offer |
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Term
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Definition
| an industry where a firm can achieve economies of scale over the entire range of market supply |
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Term
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Definition
| an imperfectly competitive industry subject to potential entry if prices or profits increase |
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Term
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Definition
| the proportion of total industry produced by the largest firms (usually the four largest) |
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Term
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Definition
| each oligopolist has to consider the potential response of rivals when formulating price or output strategies - } the study of decision making in situations when strategic interaction (moves and countermoves) between rivals occurs |
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Term
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Definition
| explicit agreements among producers regarding the price(s) at which a good is to be sold |
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Term
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Definition
| allows one firm to establish the (market) price for all firms in the industry |
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Term
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Definition
| a group of firms with an explicit, formal agreement to fix prices and output shares in a particular market |
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Term
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Definition
| temporary price reductions designed to alter market shares or drive out competition |
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