What is a price taker?
What are the characteristics of a perfectly competitive market?
What would happen if a perfect competitor raised it's price even 1 penny?
Real examples of perfect competition are very difficult to find
To be profitable...a company needs to ________________ their costs and ____________their revenue.
What is implicit cost?
what are explicit costs?
What is a production function?
What happens when new technology is added to a production function?
What are the three primary factors of production?
What is a monopoly?
What are barriers to entry?
What is monopoly power?
controlling a resource necessary to production is one way to keep out competition!
What is the benefit of a patent?
What is a benefit of a patent or copyright?
What is economies of scale?
What is a natural barrier?
The three natural barriers are: economies of scale, problems raising capital, and control of resources.