Chapter 11 - Market Structures: Perfect Competition and Monopoly

market price

When the ________ falls below the firm's minimum average variable cost, the price it obtains per unit does not cover its variable costs.

break-even price

The term, ________, refers to the minimum average total cost of a price-taking firm is called its break-even price, the price at which it earns zero economic profit (which we now know as a normal profit).

fixed costs

Costs that are constant regardless of the quantity of product generated and can only be changed in the long term