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LONG-RUN ADJUSTMENT: The combined adjustment of an industry and of each firm in the industry to an equilibrium condition that based on (1) profit maximization when all inputs are variable and (2) the entry and exit of firms. The complete adjustment is undertaken by both perfect competition and monopolistic competition. There are two parts of this adjustment process. One is the adjustment of each firm to the appropriate factory size that maximizes long-run profit. The other is the entry of firms into the industry or exit of firms out of the industry, to eliminated economic profits or economic losses. The end result of this long-run adjustment is different for the two market structures based on the fact that perfect competition has equality between price and marginal revenue, while monopolistic competition does not.
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PRINCIPLE OF MEDIAN LOCATION: A basic principle of location theory stating that an activity will select the median or middle point of location when selling an output to, or buying an input from, activities located a disperse points. In particular, this analysis indicates that the activity will locate at the median point, with an equal number of attraction points in any direction, rather than the arithmetic average of the distances to all points. The analysis imposes several restrictive assumptions, including a trip to each location, the same transit cost per mile to each location, the same quantity of output sold to, or input purchased from, each location. The principle of median voter is a similar principle that has been developed in the public choice study of voting behavior. See also | location theory | competition along a line | spatial | space | accessibility | dispersive force | attractive force | public choice |
Recommended Citation:PRINCIPLE OF MEDIAN LOCATION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: July 26, 2024].
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INDEX OF CONSUMER SENTIMENT A measure of consumer attitudes, preferences, and expectations concerning the state of the economy and business-cycle conditions that is compiled each month by the Survey Research Center at the University of Michigan. The Index of Consumer Sentiment is one of two primary measures of consumer attitudes. The other is the Consumer Confidence Index developed by The Conference Board.
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BLACK DISMALAPOD
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Today, you are likely to spend a great deal of time wandering around the shopping mall seeking to buy either decorative picture frames or storage boxes for your income tax returns. Be on the lookout for telephone calls from long-lost relatives.
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The penny is the only coin minted by the U.S. government in which the "face" on the head looks to the right. All others face left.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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CAP
Common Agricultural Policy
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