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VARIABLE COST: In general, cost that changes with changes in the quantity of output produced. More specifically, variable cost is combined with the adjectives "total" and "average" to indicate the overall level of variable cost or the per unit variable cost. Variable cost depends on the amount of produced. If there is no production, then there is no variable cost.
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Lesson 23: Factor Market Equilibrium | Unit 3: Perfect Competition
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Page: 12 of 24
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- The four key characteristics of perfect competition are:
- Large number of small firms on the buying side.
- Identical products.
- Perfect resource mobility.
- Perfect knowledge.
- The end result of perfect competition is that each buyer is a price taker.
- The supply curve facing a firm hiring in a perfect competition factor market is illustrated in this diagram.
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AVERAGE REVENUE, MONOPOLISTIC COMPETITION The revenue received for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue often goes by a simpler and more widely used term... price. For a monopolistically competitive firm average revenue is greater than marginal revenue. Average revenue for a monopolistically competitive firm is often depicted by a negatively-sloped average revenue curve.
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
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"There is no passion to be found playing small ‚ in settling for a life that idles than the one you are capable of living." -- Nelson Mandela
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OECD
Organization for Economic Co-operation and Development
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