| interactive activity
Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Price- Price- Perfectly competitive market Perfectly competitive industry Market share Standardized product Commodity Free entry and exit Marginal benefit Principle of marginal analysis Marginal revenue Optimal output rule Price- Marginal revenue curve Economic profit Explicit cost Implicit cost Accounting profit Break- Shut- Sunk cost Short- Industry supply curve Short- Short- Long- Long- | the profit of a price- an economic balance in which, given sufficient time for producers to enter or exit an industry, the quantity supplied equals the quantity demanded. a graphical representation that shows how an individual producer’s profit- an industry in which all producers are price- a graphical representation showing how marginal revenue varies as output varies. the additional benefit derived from producing one more unit of a good or service. a producer whose actions have no effect on the market price of the good or service it sells. a business’s revenue minus the explicit cost and depreciation; usually larger than economic profit. the change in total revenue generated by an additional unit of output. output of different producers regarded by consumers as the same good; also referred to as a standardized product. a graphical representation that shows how quantity supplied responds to price once producers have had time to enter or exit the industry. a market in which all participants are price- a graphical representation that shows the relationship between the price of a good and the total output of the industry for that good. the market price at which a firm earns zero profits. describes an industry that potential producers can easily enter or current producers can easily leave. the proposition that the optimal quantity is the quantity at which marginal benefit is equal to marginal cost. a cost that has already been incurred and is not recoverable. a cost that does not require the outlay of money; it is measured by the value, in dollar terms, of forgone benefits. a cost that involves actually laying out money. the price at which a firm ceases production in the short run because the market price has fallen below the minimum average variable cost. a graphical representation that shows how the quantity supplied by an industry depends on the market price, given a fixed number of producers. a business’s revenue minus the opportunity cost of resources; usually less than the accounting profit. a consumer whose actions have no effect on the market price of the good or service he or she buys. the fraction of the total industry output accounted for by a given producer’s output. output of different producers regarded by consumers as the same good; also referred to as a commodity. an economic balance that results when the quantity supplied equals the quantity demanded, taking the number of producers as given. profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost. |