Market Structures Vocab Flashcards
Perfect competition
Market structure characterized by a large number of consumers and producers who create identical products
Ex. Farm
Monopolistic Competition
Market structure characterized by large number of consumers and producers that DO NOT sell identical products
Ex. Levi’s, Converse
Oligopoly
Market structure characterized by a small number of large firms dominate the industry. Can influence prices and competition
Ex. Apple, Samsung
Monopoly
One company that has exclusive control over a product or service in a market
Ex. Google
Total product
The total amount of product produced
Marginal Product
Additional amount of product produced with the addition of one more unit of resource
Fixed Costs
Production costs that remain the same no matter how many of the product is produced
Variable cost
Production costs that change depending on how much product is produced
Total cost
The total amount of fixed and total variable costs
(Total variable cost + Total fixed costs)
Marginal cost per unit
Additional cost of production to produce one more unit of the product
(Labor cost divided by marginal product)
Total revenue
Total amount of money that the business receives in sales of the product
Marginal Revenue per unit
Additional revenue the business receives with the addition of one more unit of product
Profit Maximization Point
Marginal Cost = Marginal Revenue
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