CH 9

Front

Perfect competition

Back

A market with many firms selling the same product

Front

Price taker

Back

A firm accepts the market price

Front

Total revenue

Back

Money from selling product

Front

Marginal revenue

Back

Extra money from selling one more unit

Front

The firms output decision

Back

The firm chooses how much to produce to make the best profit

Front

Marginal analysis

Back

Comparing extra revenue and extra cost to decide the best output

Front

Shutdown point

Back

The lowest price where the firm should still produce

Front

The firms supply curve

Back

shows how much the firm will produce at different prices

Front

Short - run market supply curve

Back

Shows the total quantity supplied by all firms in the market each price

Front

External economies

Back

When more firms enter and help lower production costs