{"id":2473,"date":"2015-06-23T22:41:42","date_gmt":"2015-06-23T22:41:42","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterymicro1xngcxmaster\/?post_type=chapter&p=2473"},"modified":"2015-12-17T22:44:11","modified_gmt":"2015-12-17T22:44:11","slug":"glossary-perfect-competition","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/atd-herkimer-microeconomics\/chapter\/glossary-perfect-competition\/","title":{"raw":"Glossary: Perfect Competition","rendered":"Glossary: Perfect Competition"},"content":{"raw":"
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\u00a0entry<\/div>\r\n
the long-run process of firms entering an industry in response to industry profits<\/dd>
exit<\/dt>
the long-run process of firms reducing production and shutting down in response to industry losses<\/dd>
long-run equilibrium<\/dt>
where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC<\/dd>
marginal revenue<\/dt>
the additional revenue gained from selling one more unit<\/dd>
market structure<\/dt>
the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold<\/dd>
perfect competition<\/dt>
each firm faces many competitors that sell identical products<\/dd>
price taker<\/dt>
a firm in a perfectly competitive market that must take the prevailing market price as given<\/dd>
shutdown point<\/dt>
level of output where the marginal cost curve intersects the average variable cost curve at the minimum point of AVC; if the price is below this point, the firm should shut down immediately<\/dd><\/dl><\/div>\r\n
<\/div>","rendered":"
\n
\u00a0entry<\/div>\n
\n
the long-run process of firms entering an industry in response to industry profits<\/dd>\n
exit<\/dt>\n
the long-run process of firms reducing production and shutting down in response to industry losses<\/dd>\n
long-run equilibrium<\/dt>\n
where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC<\/dd>\n
marginal revenue<\/dt>\n
the additional revenue gained from selling one more unit<\/dd>\n
market structure<\/dt>\n
the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold<\/dd>\n
perfect competition<\/dt>\n
each firm faces many competitors that sell identical products<\/dd>\n
price taker<\/dt>\n
a firm in a perfectly competitive market that must take the prevailing market price as given<\/dd>\n
shutdown point<\/dt>\n
level of output where the marginal cost curve intersects the average variable cost curve at the minimum point of AVC; if the price is below this point, the firm should shut down immediately<\/dd>\n<\/dl>\n<\/div>\n
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Candela Citations<\/h3>\n\t\t\t\t\t
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