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If MR > MC - ANSWER-The firm should increase production
If MR < MC - ANSWER-The firm should decrease production
Output - ANSWER-The goods or services produced by a firm
Factors of Production - ANSWER-Land, labor, and capital
Marginal Product - ANSWER-The additional output from one
more unit of input
Diminishing Marginal Product - ANSWER-Additional inputs
increase output at a
decreasing
rate
Four Market Structures - ANSWER-Competition;
monopolistic competition;
oligopoly;
monopoly
, Perfect Competition - ANSWER-A market with many sellers,
identical products,
and low barriers to
entry
Price Taker - ANSWER-A firm with no control over market price
Free Entry and Exit - ANSWER-Firms can easily enter or leave
the market
Economic Profit in Competition - ANSWER-Long-run
economic profit tends
toward
zero
Monopoly - ANSWER-A market with one seller and high
barriers to entry
Price Maker - ANSWER-A firm that can influence the market
price
Natural Monopoly - ANSWER-A monopoly formed because one
firm can supply
the market more
efficiently