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Perfect Competition
Market structure with many buyers and sellers.
Price Taker
A firm/seller that cannot influence the market price of the product it sells. And it finds itself small relative to the total market supply.
Monopoly
Market structure with a single seller.
Perfectly Competitive Firm
a firm is restrained from being anything
Homogenous Product
Identical goods are offered by different firms.
Equilibrium Price
Price where market demand equals supply.
Demand Curve
Graph showing relationship between price and quantity demanded.
Marginal Revenue (MR)
Additional revenue from selling one more unit.
Profit Maximization Rule
Produce where MR equals Marginal Cost (MC).
Patents
Legal protection preventing others from producing an invention.
Public Franchise
a right that government grants to a firm and that permits the firm to provide a particular good or service and excludes all others from doing so.
Economies of Scale
Cost advantages as production increases.
Natural Monopoly
Market where one firm can supply at lower cost.
Price Searcher
Seller that can influence the price of its product.
Monopoly Firm
Industry, they are one and the same.
Monopolist
both gains and loses by lowering price.
Downward Sloping Demand Curve
Indicates higher prices lead to lower quantity demanded.
Marginal Revenue Curve
shows revenue changes with output.
Resource Allocative Efficiency
Optimal distribution of resources for maximum benefit.
Average Total Cost (ATC)
Total cost divided by quantity produced.
Perfectly Elastic Demand Curve
Horizontal demand curve at market price for firms.
Ceteris Paribus
Assumption that other variables remain constant.
Note 
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