Chapter 24 - Perfect Competition

Economic profit

________ is positive, so firms will enter the market.

monopolist competition

A(n) ________ is where there are no barriers to entering the market, so there are many firms, and each firm sells a slightly different product.

monopoly

A(n) ________ is a single firm that serves the entire market.

total revenue

Operate if ________ is greater than variable cost.

long run supply curve

The ________ is relatively flat because firms enter the industry and build new factories, so there are no diminishing returns to increase production costs.

competitive market

A perfectly ________ is a market with many sellers and buyers of a homogeneous product and no barriers to entry.

perfectly competitive market

A ____________________ is a market with many sellers and buyers of a homogeneous product and no barriers to entry.

price taker

A _____________ is a buyer or seller that takes the market price given.

constant-cost industry 

A _______________ is an industry in which the average cost of production is constant; the long-run supply curve is horizontal.

Marginal revenue

_____________ is the change in total revenue from selling one or more units of output.