Chapter 10

3. costs / Firms eliminate these.
4. Index / Square of the percentage market share of each firm summed over largest 50 firms.
5. concentration ratio / Percentage of value of sales accounted for by the four largest firms in an industry.
8. competition / Large number of firms making similar but slightly different products.
9. / Firm owned by one or more limited liability shareholders.
10. constraints / Technology, Information, Market.
11. of scale / The cost of producing a unit of a good falls as output rate increases.
14. / A handful of firms compete.
15. Competition / Many firms, selling identical products.

1. depreciation / The fall in market value of firm's capital over a given period.
2. / A firm with two or more owners who have unlimited liability.
3. efficiency / When a firm produces a given output using the least amount of input.
6. / any method of producing a good or service.
7. rental rate / Firm's opportunity cost of using its own capital.
12. proprietorship / A single owner of a firm.
13. / One firm.