Yours

1.9.6: Key Terms

Principles of Microeconomics 3e · LibreTexts

0%

Contents

    Text

    Size
    100%
    Theme
    Typeface
    Line length
    Spacing

    From LibreTexts, under CC BY 4.0, as the source states it; its equations are written in TeX, which the PDF shows typeset. This page at LibreTexts.

    Example and Directions
    Words (or words that have the same definition) The definition is case sensitive (Optional) Image to display with the definition [Not displayed in Glossary, only in pop-up on pages] (Optional) Caption for Image (Optional) External or Internal Link (Optional) Source for Definition
    (Eg. "Genetic, Hereditary, DNA ...") (Eg. "Relating to genes or heredity") Illustration The infamous double helix https://bio.libretexts.org/ CC-BY-SA; Delmar Larsen
    Glossary Entries
    Word(s) Definition Image Caption Link Source
    break even point level of output where the marginal cost curve intersects the average cost curve at the minimum point of AC; if the price is at this point, the firm is earning zero economic profits        
    entry the long-run process of firms entering an industry in response to industry profits        
    exit the long-run process of firms reducing production and shutting down in response to industry losses        
    long-run equilibrium where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC        
    marginal revenue the additional revenue gained from selling one more unit        
    market structure the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold        
    perfect competition each firm faces many competitors that sell identical products        
    price taker a firm in a perfectly competitive market that must take the prevailing market price as given        
    shutdown point level of output where the marginal cost curve intersects the average variable cost curve at the minimum point of AVC; if the price is below this point, the firm should shut down immediately        

    This page titled 1.9.6: Key Terms was last modified on Mon, 09 Feb 2026 19:55:35 GMT and is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by OpenStax via source content that was edited to the style and standards of the LibreTexts platform.