|
|
LAW OF COMPARATIVE ADVANTAGE: A basic principle that states every nation has a production activity that incurs a lower opportunity cost than that of another nation, which means that trade between the two nations can be beneficial to both if each specializes in the production of a good with lower relative opportunity cost. While this law is fundamental to the study of international trade, it also applies to other activities, especially the specialization and the division of labor.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 16: Perfect Competition | Unit 1: Price Taker
|
Page: 5 of 28
|
In this unit, you should have learned about:- Perfect competition as an ideal market structure that can provide a better understanding of market supply.
- That perfect competition does not exist in its' idealized "perfect" form in the real world, but that it provides a benchmark for evaluating real world firms and other market structures.
- The four characteristics of perfect competition:
- A large number of small firms.
- Identical products.
- Perfect resource mobility.
- Perfect knowledge.
- That a perfectly competitive firm is a price taker, with no market control or the ability to affect price determined in the market.
- Why the demand curve facing a perfectly competitive firm is horizontal or perfectly elastic.
- The profit maximization motivation of a perfectly competitive firm, which is fundamentally the same as any other firm.
|
|
|
|
|
|
|
MARGINAL REVENUE PRODUCT CURVE A curve that graphically illustrates the relation between marginal revenue product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the incremental change in total revenue for incremental changes in the variable input. The marginal revenue product curve plays a key role in marginal productivity theory and the economic analysis of factor markets.
Complete Entry | Visit the WEB*pedia |
|
|
WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time at a dollar discount store wanting to buy either an AC adapter for your CD player or storage boxes for your family photos. Be on the lookout for slow moving vehicles with darkened windows.
Your Complete Scope
This isn't me! What am I?
|
|
|
The first paper notes printed in the United States were in denominations of 1 cent, 5 cents, 25 cents, and 50 cents.
|
|
|
"Inside the ring or out, ain't nothing wrong with going down. It's staying down that's wrong. " -- Muhammad Ali
|
|
R&D
Research and Development
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
