MICROECONOMICS II

2. firm that can choose among price and output combinations along the demand curve
4. seller with no control over price of product it sells
6. single firm can supply entire market demand at a low cost
7. firm competes with better quality and not by lowering prices
9. when marginal revenue is positive
11. obvious and genuine differences between goods and services
13. as number of users increases so does the value of the good
15. maximum profit
16. market characterized by homogenous or differentiated product, few large sellers and difficult market entry
17. group of firms reduce competition
18. key traits of market
19. firms cause other firms reaction
20. change in total revenue from a sales additional output

1. selling a good for a higher price than it is bought
2. one firm sets price for an industry
3. market structure with single seller, unique product, impossible entry into product
4. seller charges different prices not because of cost differences
5. firms barriers to enter market
8. a firms obstacle when trying to enter a new market
10. market structure with many small sellers, differential product and easy market and exit
11. no restraints on new firms when entering an industry
12. no substitutes for a product
14. rivals model of strategic moves