2026 LSUS ECON 705 Module 4 exam
study guide Louisiana State
University, Shreveport
perfect competition - --ANSWER-a market consisting of a very large number of small firms producing
an identical product in which entry into and exit from the industry is not obstructed.
price takers - --ANSWER-Buyers and sellers in a competitive market that must accept the price
determined by the market.
What are the characteristics that define perfectly competitive markets? - --ANSWER-- Large # of buyers
and sellers.
- Same product.
- Prices charged by all firms known/price takers
- Negligible transaction costs
- Firms can freely enter or exit the market.
Total Revenue (TR) - --ANSWER-TR = P x Q
Average revenue (AR) - --ANSWER-AR = TR / Q = P
Marginal Revenue (MR) - --ANSWER-MR = ∆TR
/ ∆Q The change in TR from selling one more
unit.
This study source was downloaded by 100000895528565 from coursesidekick.com on 02 -01-2026 13:33:11 GMT -06:00
study guide Louisiana State
University, Shreveport
perfect competition - --ANSWER-a market consisting of a very large number of small firms producing
an identical product in which entry into and exit from the industry is not obstructed.
price takers - --ANSWER-Buyers and sellers in a competitive market that must accept the price
determined by the market.
What are the characteristics that define perfectly competitive markets? - --ANSWER-- Large # of buyers
and sellers.
- Same product.
- Prices charged by all firms known/price takers
- Negligible transaction costs
- Firms can freely enter or exit the market.
Total Revenue (TR) - --ANSWER-TR = P x Q
Average revenue (AR) - --ANSWER-AR = TR / Q = P
Marginal Revenue (MR) - --ANSWER-MR = ∆TR
/ ∆Q The change in TR from selling one more
unit.
This study source was downloaded by 100000895528565 from coursesidekick.com on 02 -01-2026 13:33:11 GMT -06:00
