(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
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| average revenue | a business's total revenue per unit of output (See page(s) 113) |
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| breakeven point | the profit-maximizing output where price (or average revenue) equals average cost (See page(s) 177) |
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| business's demand curve | the demand curve faced by an individual business, as opposed to an entire market (See page(s) 113) |
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| business's supply curve | a curve that shows the quantity of output supplied by a business at every possible price (See page(s) 119) |
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| entry barriers | economic or institutional obstacles to businesses entering an industry (See page(s) 109) |
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| marginal revenue | the extra total revenue earned from an additional unit of output (See page(s) 114) |
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| marginal-cost pricing | the practice of setting price where it equals marginal cost (See page(s) 122) |
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| market power | a business's ability to affect the price of the product it sells (See page(s) 111) |
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| minimum-cost pricing | the practice of setting price where it equals minimum average cost (See page(s) 122) |
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| monopolistic competition | a market structure characterized by many buyers and sellers of slightly different products and easy entry to, and exit from, the industry (See page(s) 108) |
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| monopoly | a market structure characterized by only one business supplying a product with no close substitutes and restricted entry to the industry (See page(s) 109) |
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| natural monopoly | a market in which only one business is economically viable because of increasing returns to scale (See page(s) 109) |
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| oligopoly | a market structure characterized by only a few businesses offering standard or similar products and restricted entry to the industry (See page(s) 108) |
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| perfect competition | a market structure characterized by many buyers and sellers of a standard product and easy entry to and exit from the industry (See page(s) 108) |
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| predatory pricing | an unfair business practice of temporarily lowering prices to drive out competitors in an industry (See page(s) 110) |
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| profit-maximizing output rule | produce at the level of output where marginal revenue and marginal cost intersect (See page(s) 114) |
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| shutdown point | the level of output where price (or average revenue) equals minimum average variable cost (See page(s) 118) |