market failure

2. the ability to control and influence the market in one's own self interest
6. a measure of efficiency of production, rate of output per input
7. When resources are used optimally, one person cannot be better off without making someone else worse off
8. pressure of market forces to reduce prices and increase quality
11. use of factors of production to perform narrowly defined,
12. Once past, adding a new factor of production will cause a decrease in productivity with each unit produced
13. a market with: one seller and no substitutes
14. cost saving advantages that a firm gains by increasing the scale of production
16. costs incurred by a firm whenever production occurs (power and wages)
17. a market with: a few firms that sell similar but not identical products
18. the ability of an economy to achieve the maximum output based on the available resources

1. any arrangement that allows buyers and sellers to exchange things
3. the extra costs needed to produce one more item
4. all costs involved in a given amount of output
5. costs that a firm must meet regardless of the amount produced (capital equipment or rates)
9. a market with: a large number of buyers and sellers with similar but not identical products
10. a theoretical market, many buyers and sellers trade the same products with no market barriers
15. the basic unit of organized production