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.

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.