Characteristics
This market structure has many sellers, standardized products, and easy entry and exit:
Perfect competition
Where is the profit maximizing point?
MR = MC
Total revenue is calculated using this formula.
P x Q
When firms earn profit in perfect competition, new firms tend to do this
Enter the market
What does the acronym GASP stand for?
Generally Accepted Scinto Principles
In perfect competition, firms are considered ___________ because they cannot control market price.
Price takers
As long as MR is greater than MC, a firm should do this.
Continue producing
What is another name for 0 economic profit?
Normal profit
When firms experience losses in perfect competition, firms tend to do this
Exit the market
What are you getting on the AP exam?
55
In the long run, perfect competition firms earn this amount of economic profit
Zero economic profit
When is a producer productively efficient
Operating at the minimum point of the ATC
What is the breakeven point?
Profit causes firms to _______ the market and the industry supply curve shifts to the _______
Enter; right
Which BAMP course fulfills the Financial Literacy requirement?
AP Microeconomics
In perfect competition, MR, AR, D, and ____ are all equal
Price (P)
When is a consumer is allocatively efficient
P = MC
Loss per unit is measured by the distance between these two values
ATC and MR
Loss causes firms to _______ the market and the industry supply curve shifts to the _______
exit; left
What is the full name of the course you are taking next year with Ms. Bendik?
Honors Business Law & Entrepreneurship
Describe the demand curve for a perfectly competitive firm
Perfectly elastic demand
They are minimizing their costs
In the short run, firms can continue operating as long as price covers this cost.
AVC (average variable cost)
When firms exit the market, what happens to the market price?
It increases
What year did Mr. Scinto start teaching at MHS?
1982