question
pure competition
answer
large number of firms producing standardized product; individual firms can react to price changes but cannot change the market price
question
pure monopoly
answer
one firm is the sole seller, blocked entry to other firms, no effort to differentiate product
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monopolistic competition
answer
large number of sellers selling differentiated products, widespread nonprice competition
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oligopoly
answer
few sellers, standardized OR differentiated product; each firm is affected by decisions of its rivals
question
imperfect competition
answer
combination of pure monopoly, monopolistic competition, and oligopoly
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price taker
answer
seller/buyer that is unable to affect price of a product/resource that is being supplied/bought
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average revenue
answer
TR divided by Quantity sold
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constant-cost industry
answer
expansion by entry of new firms has no effect on production/resource costs
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increasing-cost industry
answer
expansion by entry of new firms raises production/resource costs for firms
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decreasing-cost industry
answer
expansion by entry of new firms lowers production/resource costs for firms
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natural monopoly
answer
largest supplier in a market has overwhelming cost advantage over competitors
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marginal revenue
answer
change in total revenue resulting from sale of one additional unit of product (change in total cost/change in quantity sold)
question
total revenue
answer
total number of dollars received by a firm/firms from the sale of a product
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