{"id":398,"date":"2020-03-24T04:51:37","date_gmt":"2020-03-24T04:51:37","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/glossary-perfect-competition\/"},"modified":"2023-05-22T19:21:05","modified_gmt":"2023-05-22T19:21:05","slug":"glossary-perfect-competition","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/chapter\/glossary-perfect-competition\/","title":{"raw":"Glossary: Perfect Competition","rendered":"Glossary: Perfect Competition"},"content":{"raw":"<div id=\"id576868\" class=\"glossary\" title=\"Glossary\">\n<div class=\"titlepage\">&nbsp;entry<\/div>\n<dl><dd>the long-run process of firms entering an industry in response to industry profits<\/dd><dt>exit<\/dt><dd>the long-run process of firms reducing production and shutting down in response to industry losses<\/dd><dt>long-run equilibrium<\/dt><dd>where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC<\/dd><dt>marginal revenue<\/dt><dd>the additional revenue gained from selling one more unit<\/dd><dt>market structure<\/dt><dd>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<\/dd><dt>perfect competition<\/dt><dd>each firm faces many competitors that sell identical products<\/dd><dt>price taker<\/dt><dd>a firm in a perfectly competitive market that must take the prevailing market price as given<\/dd><dt>shutdown point<\/dt><dd>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<\/dd><\/dl><\/div>\n<div class=\"cnx-eoc summary\"><\/div>","rendered":"<div id=\"id576868\" class=\"glossary\" title=\"Glossary\">\n<div class=\"titlepage\">&nbsp;entry<\/div>\n<dl>\n<dd>the long-run process of firms entering an industry in response to industry profits<\/dd>\n<dt>exit<\/dt>\n<dd>the long-run process of firms reducing production and shutting down in response to industry losses<\/dd>\n<dt>long-run equilibrium<\/dt>\n<dd>where all firms earn zero economic profits producing the output level where P = MR = MC and P = AC<\/dd>\n<dt>marginal revenue<\/dt>\n<dd>the additional revenue gained from selling one more unit<\/dd>\n<dt>market structure<\/dt>\n<dd>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<\/dd>\n<dt>perfect competition<\/dt>\n<dd>each firm faces many competitors that sell identical products<\/dd>\n<dt>price taker<\/dt>\n<dd>a firm in a perfectly competitive market that must take the prevailing market price as given<\/dd>\n<dt>shutdown point<\/dt>\n<dd>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<\/dd>\n<\/dl>\n<\/div>\n<div class=\"cnx-eoc summary\"><\/div>\n","protected":false},"author":32,"menu_order":20,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-398","chapter","type-chapter","status-publish","hentry"],"part":359,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/users\/32"}],"version-history":[{"count":1,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/398\/revisions"}],"predecessor-version":[{"id":399,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/398\/revisions\/399"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/parts\/359"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapters\/398\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/media?parent=398"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/pressbooks\/v2\/chapter-type?post=398"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/contributor?post=398"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/accanderssenmicro\/wp-json\/wp\/v2\/license?post=398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}