market structure
All features of a market that affect the behaviour and performance of
firms in that market, such as the number and size of sellers, the extent of
knowledge about one another’s actions, the degree of freedom of entry,
and the degree of product differentiation.
market power
The ability of a firm to influence the price of its product.
perfect competition
A market structure in which all firms in an industry are price takers, and
in which there is freedom of entry into and exit from the industry.
homogeneous product
In the eyes of purchasers, every unit of the product is identical to every
other unit.
price taker
A firm that can alter its output and sales without affecting the market
price of its product.
total revenue (TR)
Total receipts from the sale of a product; price times quantity.
average revenue (AR)
Total revenue divided by quantity sold; this is the market price when all