Managerial Economics Ch. 7 - Custom Scholars
Order Now
Home » Flash Cards » Managerial Economics Ch. 7

Managerial Economics Ch. 7

question
Perfect Competition
answer
A market structure characterized by a large number of firms in the market, an undifferentiated product, ease of entry into the market, and complete information available to all market participants.
question
Price-Taker
answer
A characteristic of a perfectly competitive market in which the firm cannot influence the price of its product, but can sell any amount of its output at the price established by the market.
question
Profit Maximization
answer
The assumed goal of firms, which is to develop strategies to earn the largest amount of profit possible. This can be accomplished by focusing on revenues or costs or both factors.
question
Profit maximizing rule
answer
To maximize profits, a firm should produce the level of output where marginal revenue equals marginal cost.
question
Marginal revenue for the perfectly competitive firm
answer
The marginal revenue curve for the perfectly competitive firm is horizontal because the firm can sell all units of output at the market price, given the assumption of a perfectly elastic demand curve. Price equals marginal revenue for the perfectly competitive firm
question
Shutdown point for the perfectly competitive firm
answer
The price, which equals a firm's minimum average variable cost, below which it is more profitable for the perfectly competitive firm to shut down than to continue to produce.
question
Supply curve for the perfectly competitive firm
answer
The portion of a firm's marginal cost curve that lies above the minimum average variable cost.
question
Supply curve for the perfectly competitive industry
answer
The curve that shows the output produced by all perfectly competitive firms in the industry at different prices.
question
Equilibrium point for the perfectly competitive firm
answer
The point where price equals average total cost because the firm earns zero economic profit at this point. Economic profit incorporates all implicit costs of production, including a normal rate of return on the firm's investment.
question
Economies of scale
answer
Achieving lower unit costs of production by adopting a larger scale of production, represented by the downward sloping portion of a long-run average cost curve.
question
Diseconomies of scale
answer
Incurring higher unit costs of production by adopting a larger scale of production, represented by the upward sloping portion of a long-run average cost curve.
question
Industry concentration
answer
A measure of how many firms produce the total output of an industry. The more concentrated the industry, the fewer the firms operating in that industry.
question
Price cost margin (PCM)
answer
The relationship between price and costs for an industry, calculated by subtracting the total payroll and the cost of materials from the value of shipments and then dividing the results by the value of the shipments. The approach ignores taxes, corporate overhead, advertising and marketing, research, and interest expenses
1 of 13
question
Perfect Competition
answer
A market structure characterized by a large number of firms in the market, an undifferentiated product, ease of entry into the market, and complete information available to all market participants.
question
Price-Taker
answer
A characteristic of a perfectly competitive market in which the firm cannot influence the price of its product, but can sell any amount of its output at the price established by the market.
question
Profit Maximization
answer
The assumed goal of firms, which is to develop strategies to earn the largest amount of profit possible. This can be accomplished by focusing on revenues or costs or both factors.
question
Profit maximizing rule
answer
To maximize profits, a firm should produce the level of output where marginal revenue equals marginal cost.
question
Marginal revenue for the perfectly competitive firm
answer
The marginal revenue curve for the perfectly competitive firm is horizontal because the firm can sell all units of output at the market price, given the assumption of a perfectly elastic demand curve. Price equals marginal revenue for the perfectly competitive firm
question
Shutdown point for the perfectly competitive firm
answer
The price, which equals a firm's minimum average variable cost, below which it is more profitable for the perfectly competitive firm to shut down than to continue to produce.
question
Supply curve for the perfectly competitive firm
answer
The portion of a firm's marginal cost curve that lies above the minimum average variable cost.
question
Supply curve for the perfectly competitive industry
answer
The curve that shows the output produced by all perfectly competitive firms in the industry at different prices.
question
Equilibrium point for the perfectly competitive firm
answer
The point where price equals average total cost because the firm earns zero economic profit at this point. Economic profit incorporates all implicit costs of production, including a normal rate of return on the firm's investment.
question
Economies of scale
answer
Achieving lower unit costs of production by adopting a larger scale of production, represented by the downward sloping portion of a long-run average cost curve.
question
Diseconomies of scale
answer
Incurring higher unit costs of production by adopting a larger scale of production, represented by the upward sloping portion of a long-run average cost curve.
question
Industry concentration
answer
A measure of how many firms produce the total output of an industry. The more concentrated the industry, the fewer the firms operating in that industry.
question
Price cost margin (PCM)
answer
The relationship between price and costs for an industry, calculated by subtracting the total payroll and the cost of materials from the value of shipments and then dividing the results by the value of the shipments. The approach ignores taxes, corporate overhead, advertising and marketing, research, and interest expenses
Continue to order Get a quote

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code BEGOOD

Order Now
seoartvin escortizmir escortelazığ escortbacklink satışbacklink saleseskişehir oto kurtarıcıeskişehir oto kurtarıcıoto çekicibacklink satışbacklink satışıbacklink satışbacklink