Perfect Competition

the amount left over from total revenue once explicit cost is subtracted

economic state in which production matches consumer preference

a line on a graph showing different combinations of quantities demanded and prices, which can also be used to show the maximum price that an individual consumer (or the demand side of the market) would be willing to pay

decrease in the value of assets

the amount left over from total revenue once explicit and implicit costs are subtracted

propensity for consumers to change demand based on price

state in which economic forces are in balance

a cost involving a payment

the cost of fixed inputs; does not change as output changes

a cost that does not require the buyer to pay cash, or that cannot easily be assigned a monetary value

the additional cost that a firm incurs by producing an additional unit of output, which must be covered in order to remain operational in the short run

the revenue earned by selling one additional unit of a good

the ability of a supplier to set the market price and control the amount of the good/service available to consumers

economic situation wherein a firm's total revenue is equal to its total cost

the value or benefit of the next best alternative given up when making a choice

theoretical state in which all participants in a market know everything about price, supply, and so on

company that must accept the market price for goods and services

situation in which the maximum possible production of one good is achieved without harming production of another good

a graphical representation that shows the quantity supplied at different prices, which can also be used to show the maximum amount of a good or service that an individual producer (or the supply side of the market) would be willing to produce

the cost of variable inputs; changes as output changes