Chapter 6 - Perfectly competitive supply

________: amount by which price exceeds the seller's reservation price.

________: period of time of sufficient length that all the firm's factors of production are variable.

Perfectly competitive market: market in which no individual supplier has ________ on the market price of the product.

________: period of time sufficiently short that at least some of the firm's factors of production are fixed.

________: total revenue a firm receives from the sale of its product minus all costs- explicit and implicit- incurred in producing it.

________: firm that has no influence over the price at which it sells its product.

________= Total revenue- Variable cost- Fixed cost.

firm whose primary goal is to maximize the difference between its total revenues and total costs

market in which no individual supplier has significant influence on the market price of the product

firm that has no influence over the price at which it sells its product

firm that has at least some control over the market price of its product

input used in the production of a good/service

period of time sufficiently short that at least some of the firm's factors of production are fixed

period of time of sufficient length that all the firm's factors of production are variable

property of the relationship between the amount of a good/service produced and the amount of a variable factor required to produce it; the law says that when some factors of production are fixed, increased production of the good eventually requires ever-larger in creases in the variable factor

input whose quantity cannot be altered in the short run

input whose quantity can be altered in the short run

sum of all payments made to the firm's fixed factors of production

sum of all payments made to the firm's variable factors of production

sum of all payments made to the firm's fixed and variable factors of production

as output changes from one level to another, the change in total cost divided by the corresponding change in output

Total cost

variable cost divided by total output

total cost divided by total output

firm whose total revenue exceeds its total cost

amount by which price exceeds the seller's reservation price

Total revenue a firm receives from the sale of its product minus all costs explicit and implicit incurred in producing it

Firm whose primary goal is to maximize the difference between its total revenues and total costs

Market in which no individual supplier has significant influence on the market price of the product

Firm that has no influence over the price at which it sells it its product

Firm that has at least some control over the market price of its product

Input used in the production of a good/service

Period of time sufficiently short that at least some of the firm's factors of production are fixed

Period of time of sufficient length that all the firm's factors of production are variable

Property of the relationship between the amount of a good/service produced and the amount of a variable factor required to produce it; the law says that when some factors of production are fixed, increased production of the good eventually requires ever-larger in creases in the variable factor

Input whose quantity cannot be altered in the short run

Input whose quantity can be altered in the short run

Sum of all payments made to the firm's fixed factors of production

Sum of all payments made to the firm's variable factors of production

Sum of all payments made to the firm's fixed and variable factors of production

As output changes from one level to another, the change in total cost divided by the corresponding change in output

Variable cost divided by total output

Total cost divided by total output

Firm whose total revenue exceeds its total cost

Amount by which price exceeds the seller's reservation price