Module 3 Econ 101

3. calculated by subtracting both the explicit and the implicit costs of business from a firm's total revenue
8. a firm with some control over the price it charges
10. a condition existing when a single company supplies the entire market for a particular good or service
12. the change in output associated with one additional unit of an input
13. a firm that has no control over the price set by the market
15. a firm's opportunity costs of doing business
18. total revenue minus total cost; a negative result is a loss
19. information conveyed by profits and losses about the profitability of various markets
21. the increase in cost that occurs from producing additional output
22. restrictions that make it difficult for new firms to enter a market
23. a situation characterized by free entry, many different firms, and product differentiation
24. a description of the relationship between the inputs a firm uses and the output it creates

1. the inputs (labor, land, and capital) used in producing goods and services
2. one in which when there are so many buyers and sellers that the market determines price and output
4. the additional revenue generated by the production and sale of one more unit of output
5. resources are used to secure monopoly rights through the political process (manipulate government policy)
6. a condition occurring when the output level of a good is inefficient
7. process that firms use to distinguish a product from another, making it more attractive to consumers
9. rule stating the profit maximization occurs when the marginal cost is equal to marignal revenue
11. a condition occurring when successive increases in inputs are associated with a slower rise in output
14. tangible out-of-pocket expenses
16. a condition existing when a small number of firms sell a differentiated product in a market with high barriers to entry
17. the result of total revenue being less than total cost
20. a situation in which a single large firm has lower costs than any potential smaller competitor