Economics Vocab

1. A theoretical market structure where there are no barriers to entering the market and all producers are price takers
4. the extra revenue obtained by producing and selling when one more unit of output is produced
5. a market is any medium used by buyers and sellers to interact for purposes of trade or exchange
7. a private good with negative externalities
9. the pressure that market forces place on a business to reduce prices and improve the quality of their products
11. Indirect costs or benefits associated with the production and consumption of certain goods and services
13. An umbrella term for places where buyers and sellers exchange goods virtually
14. Using the least amount of resources to produce goods and services; How productively the factors of production are used in order to maximise output
17. Places where buyers and sellers meet in person to exchange goods and services
19. the cost-saving advantages that a firm gains by increasing its scale of production

2. the ability to control and influence the market in one's own self-interest
3. the addition to total costs that occurs when one or more unit of output is produced
6. occurs when a country's productive resources are used in the economy in combinations that generate the maximum benefits for consumers and the country
8. Costs that a firm must meet whether or not any production occurs
10. A private good with positive externalities
12. all costs involved in producing a given volume of output
15. the market situation where a small number of firms sell similar but not identical products
16. The messages that market prices provide about what to produce, how to produce and to whom outputs are distributed to
18. A situation in which one firm sells a product for which there is no substitute, allowing it to set the price