Econ Market Power

market structures

the characteristics of market organization that determine the behaviour of firms

market power

how much each individual firm is able to control the price it sells its product

revenues

payments that firms receive when they sell a good or service

total revenue

the total amount of revenue earned by firms when selling a good or service

average revenue

revenue earned per unit of output

marginal revenue

the additional revenue earned from the sale of an additional good or service

normal profit

the minimum level of profit necessary to keep a firm in business, equal to the opportunity cost of capital.

Monopolistic competition

A market structure characterized by many firms selling similar but differentiated products.

Barriers to Entry

Obstacles that make it difficult or impossible for new firms to enter a market.

market power

The ability of a firm to influence the price of its product or service.

Interdependence

A situation where firms must consider the actions and reactions of their competitors when making decisions.

monopoly

HUGE

oerfect comp

SHINE

monopolistic com

DIAL

oligopoly

FINH