TERM 1
market structure
DEFINITION 1
In economics, market structure (also known as the number of
firms producing identical products.) Important features of a
market such as the number of fuirms, product uniformity
across firms, firms ease of entry and exit and forms of
competition
TERM 2
Perfect Competition
DEFINITION 2
In economic theory, perfect competition describes markets
such that no participants are large enough to have the
market power to set the price of a homogeneous product. a
market structure with many fully informed buyers and sellers
of a standardized product and no obstacles to entry or exit of
firms in the long run
TERM 3
Commodity
DEFINITION 3
A commodity is a good for which there is demand, but which
is supplied without qualitative differentiation across a
market. A standardized product, a product that does not
differ across producers such as bushels of wheat or an ounce
of gold.
TERM 4
price taker
DEFINITION 4
a firm that faces a given market price and whose quantity
supplied has no effect on that price, a perfectly competitive
firm that decides to produce must accept, or "take" the
market price
TERM 5
marginal revenue
DEFINITION 5
In microeconomics, marginal revenue (MR) is the extra
revenue that an additional unit of product will bring. A
perfectly competitive firm's marginal revenue is also the
market price.
