Market with many small firms, identical products, no barriers to entry/exit, and firms are price takers.

Firms that have no control over the market price and must accept the prevailing price.

Obstacles that prevent new firms from entering a market.

The minimum profit needed to keep a firm in business; zero economic profit.

Producing goods and services at the optimal quantity, where P = MC.

Producing goods and services at the lowest possible cost, where P = min ATC.

Total revenue less total cost, including both explicit and implicit costs.

The point where a firm minimizes its losses by stopping production temporarily because the price is below AVC.

The additional revenue gained from selling one more unit.

The point where firms earn zero economic profit and are both allocatively and productively efficient.

Economic profit considers all costs (explicit and implicit), while normal profit is just enough to keep the firm operating.

Perfect competition has many small firms, while a monopoly has a single firm. Perfect competition has no barriers to entry, while a monopoly has high barriers.

In the short run, firms can experience profit or loss; in the long run, firms earn zero economic profit.

Allocative efficiency means P=MC (producing the right amount), while productive efficiency means P=min ATC (producing at the lowest cost).

In short-run loss, firms continue to produce if P > AVC; shutdown occurs when P < AVC.

A price taker accepts the market price, while a price maker can influence the market price.

Perfect competition has no barriers to entry, while oligopoly has significant barriers to entry.

Identical products are the same across all firms, while differentiated products have unique characteristics.

The long-run supply curve is perfectly elastic in perfect competition and upward sloping in an increasing cost industry.

Accounting profit only considers explicit costs, while economic profit considers both explicit and implicit costs.

It decreases the cost of production, increases supply, and lowers the market price.

It increases the cost of production, decreases supply, and raises the market price.

It creates shortages if set below the equilibrium price or surpluses if set above.

Regulations typically increase production costs, leading to decreased supply and higher prices.

More firms enter the market, increasing supply and decreasing the market price.

If binding, it reduces revenue and can lead to losses, potentially causing firms to exit the market.

If binding, it leads to surpluses, meaning firms may not be able to sell all their product.

It increases the price of imported goods, making domestic firms more competitive.

They increase costs due to compliance but can also enhance reputation and demand.

It prevents monopolies and encourages competition, potentially limiting the size and market power of individual firms.