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Unformatted text preview: market price, causing a shortage. Price Floor - Minimum price set by the government on a specific good. Usually is set above market price, causing a surplus. Price-taker - Concept that in a competitive market, buyers and sellers cannot decide what price they will accept, since they have no significant influence on the much larger market. Instead, they have to accept the market price and make their decisions accordingly. Profit - Actual amount that a firm makes from selling a good. It is equal to Total Revenue (TR) - Total Cost (TC). Seller - Someone who sells goods and services to a buyer for money. Shortage - Situation in which the quantity demanded exceeds the quantity supplied for a good or service; price is below equilibrium price. Short Run - The immediate future, for which buyers and sellers make "temporary" decisions, such as shutting down production or increasing consumption, for the time being....
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.
- Fall '08