Across
- 3. The market price and quantity at which quantity demanded equals quanti-ty supplied in the short run long-run perfectlycompetitiveequilibrium The market price and quantity at which supply equals demand, established firms have no incentive to exit the industry, and prospective firms have no incentive to enter the industry long-run marketsupplycurve A curve that shows the total quantity of output that will be supplied in the market at various prices, assuming that all long-run adjustments (plant size, new entry) take place
- 5. A seller or a buyer that takes the price of the product as given when making an output decision (seller) or a purchase decision (buyer)
- 9. The price below which a firm supplies zero output in the short run
- 13. An industry in which increases in industry output increase the prices of inputs
- 14. Characteristic of an industry in which any potential entrant has access to the same technology and inputs that existing firms have
- 15. The return that the owner of an input could get by deploying the input in its best alternative use out-side the industry
- 16. A condition in which all firms—those currently in the industry, as well as prospective entrants—have access to the same technology and inputs; one of the characteristics of a perfectly competitive industry
- 18. The rate at which total revenue changes with respect to output
- 20. The supply curve that shows how the firm’s profitmaximizing output decision changes as the market price changes, assuming that the firm cannot adjust all of its inputs (e.g., quantity of capital or land)
- 21. The economic return that is attributable to extraordinarily productive inputs whose supply is scarce
- 22. The difference between a firm’s sales revenue and the totality of its economic costs, including all relevant opportunity costs
- 23. Products that consumers perceive as being identical; one of the characteristics of a perfectly competitive industry
- 24. In a perfectly competitive industry, the occurrence of all transactions between buyers and sellers at a single, common market price
Down
- 1. An industry in which increases in industry output decrease the prices of some or all inputs
- 2. An industry that consists of many small buyers and sellers; one of the characteristics of a perfectly competitive industry
- 4. An industry in which the increase or decrease of industry output does not affect the prices of inputs
- 6. Scarce inputs that are used only by firms in a particular industry and not by other industries in the economy
- 7. The supply curve that shows the quantity supplied in the aggregate by all firms in the market for each possible market price when the number of firms in the industry is fixed
- 8. Full awareness by consumers of the prices charged by all sellers in the market; one of the characteristics of a perfectly competitive industry
- 10. A widely used measure of economic profit, equal to the company’s accounting profit minus the minimum return on invested capital demanded by the firm’s investors
- 11. A fixed cost that must be incurred for a firm to produce any output but that does not have to be incurred if the firm produces no output
- 12. A measure of the monetary benefit that producers derive from producing a good at a particular price
- 17. The sum of average variable cost and average nonsunk fixed cost
- 19. A fixed cost that the firm cannot avoid if it shuts down and produces zero output