Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Ag Econ

Chapter 8: Perfect Competition

Term/QuestionDefinition/Answer
Market Structure Conditions in an industry such as number of sellers, how easy/difficult it is for new firm to enter, and type of products sold
Perfect Competition each firm faces many competitors that sell identical products
Price taker take price as is; firm in perfectly competitive market that must take prevailing market price as given
Profit = Total revenue - total cost (Price)(Quantity Produced) - (Average Cost)(Quantity Produced)
Marginal Revenue (MR) additional revenue gained from selling one more unit Price
MR = Change in Total Revenue divided by change in quantity
Marginal Cost (MC) additional cost of producing one more unit
MC = Change in Total Cost divided by change in labor
Profit Margin relationship betwix price and average total cost (ATC); $ - ATC = Average Profit
Breakeven Point level of output where marginal cost curve intersects w/ average cost curve @ minimum point of AC; price at this point firm earns 0 econ. profits
Shutdown Point level of output where marginal cost curve intersects AVC @ minimum point of AVC; price below, firm should shut down immediately
Entry long-run process of firm entering industry in response to industry profits
Exit long-run process of firms reducing production/shutting down in response to industry losses
Long-Run Equilibrium where all firms earn 0 econ profits producing level of output where P = MR = MC + P = AC
Profit maximizing choice Happens @ level where MR=MC; Profitable - MR>MC; Not profitable - MR<MC
Maximize Profit happens @ quantity where difference betwix total revenue/total cost is largest
Constant Cost demand increase, cost of production for firm stays same; D^$P=
Decreasing Cost demand increase, cost of production for firm decreases; D^$P\
Increasing Cost demand increase, cost of production for firm increases; D^$P^
Created by: horktera
Popular Economics sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards