units are sold at the same price.
marginal revenue (MR)
The change in a firm’s total revenue resulting from a change in its sales by
one unit.
shut-down price
The price that is equal to the minimum of a firm’s average variable costs.
At prices below this, a profit-maximizing firm will produce no output.
short-run equilibrium
For a competitive industry, the price and output at which industry
demand equals short-run industry supply, and all firms are maximizing
their profits. Either profits or losses for individual firms are possible.
break-even price
The price at which a firm is just able to cover all of its costs, including the
opportunity cost of capital.
monopoly
A market containing a single firm.
monopolist
A firm that is the only seller in a market.
entry barrier
Any barrier to the entry of new firms into an industry. An entry barrier