occurs when the government sets a required price on a good or goods at a price above equilibrium
improving technology of a good leads to
if an increase in the price of good X causes a decrease in demand for good Y, good Y is
marginal revenue is the change in revenue that results in a one unit increase in
Constant cost, perfectly competitive industry is a long run equilibrium. a permanent increase in product demand will eventually result in
in the long run, compared with a perfectly competitive firm, a monopolistically competitive firm with the same costs will have
a firm in monopolisitic competition cannot
assume that a firm hires workers in a perfectly competitive labor market. as the firm hires additional workers, the marginal factor cost is
The incremental costs incurred by employing one additional unit of input
the marginal revenue created by using one additional unit of resource
is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms.
A monopoly is a market with only one producer, a duopoly has two firms, and an oligopoly consists of two or more firms. There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly influence the others.
in long-run equilibrium, the price charged by a monopolistically competitive firm is
the aggregate amount of all variable costs associated with the cost of goods sold in a reporting period
the individual's marginal cost at all points greater than the minimum average variable cost
the fixed cost that does not change with the change in the number of goods and services produced by a company
average fixed costs plus average variable costs
business metric that represents the average cost per unit of output over the long run
supply curve shifts right if
indicates that a greater quantity will be demanded when the price is lower