Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account

average revenue, marginal revenue, and total revenue divided by output

For a purely competitive seller, price equals:

down sloping, perfectly elastic

The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is _______.

can sell as much output as it chooses at the existing price

a perfectly elastic demand curve implies that the firm

change in total revenue associated with the sale of one more unit of output

marginal revenue is the

is equal to price

marginal revenue for a purely competitive firm:

to firms in all types of industries

the MR = MC rule applies:

in both the short run and the long run

the MR = MC rule applies (which run):

producing less output than allocative efficiency requires

a firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. This means the firm is

there is no tendency for the firm's industry to expand or contract

assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum then:

higher resource prices which occur as the industry expands

an increasing-cost industry is the result of:

of unimpeded entry to the industry

a purely competitive firm is precluded from making economic profit in the long run because:

those markets which are not purely competitive

economists uses the term imperfect competition to describe

pure monopoly

in which of the following industry structures is the entry of new firms the most difficult

pure competition

an industry comprised of a very large number of sellers producing a standardized product is known as

perfectly elastic

the demand schedule or curve confronted by the individual purely competitive firm is

each seller supplies a negligible fraction of total supply

price is constant or given to the individual firm selling in a purely competitive market because

is equal to price

marginal revenue for a purely competitive firm

economies of scale are large relative to market demand

a monopoly is most likely to emerge and be sustained when

they are all barriers to entry

what do economies of scale, the ownership of essential raw materials, and patents have in common?

marginal revenue is less than price

which is true with respect to the demand data confronting a monopolist

barriers to entry are either weak or nonexistant

monopolistic competition resembles pure competition because

advertising, product promotion, and changes in the real or perceived characteristics of a product

nonprice competition refers to

MR = MC and P > minimum ATC

when a monopolistically competitive firm is in long-run equilibrium

an underallocation of resources

in long-run equilibrium monopolistic competition entails

consumers have a number of variations of the product from which to choose

the economic inefficiencies of monopolistic competition may be offset by the fact that

products may be standardized or differentiated

in an oligopolistic market

a small number of firms produce a large proportiotn of industry output

the mutual interdependence that characterizes oligopoly arises because

pure monopoly, oligopoly, and monopolistic competition

in which of the following market models do demand and marginal revenue diverge

an abrupt change in price elasticity occurs

a kink may exist in an oligopolist's demand curve because

automobile manufacturing

which of the following is the best example of an oligopoly

the soft drink industry

which of the following is an illustration of differentiated oligopoly

may understate the degree of monopoly

if a product such as cement or bricks is costly to ship and, therefore, markets are very localized, the national concentration ratio for that indsutry


assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl Index for this industry is

a pure monopoly

if the firms in an oligopolistic industry can establish an effective cartel, the resulting output and price will approximate those of

neither productive efficiency nor allocative efficiency

suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl Index of 3,000. Most likely this industry would achieve

pure competition

under which of the following market structures will the long-run equilibrium price be equal to marginal cost?

monopolistic competition

an industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of

pure monopoly, oligopoly, monopolistic competition, and pure competition

which of the following correctly arrays the various market structures in terms of their similarities to one another?

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording