QUESTION 2 Match each of the terms to their description: v Entry A. additional cost of producing one more unit B. additional revenue gained from selling one more unit C. a firm leaves the market when they incur losses D. a firm joins a market in hopes of making profits Exit Price Taker v Marginal Revenue E. Firms receive their price from the market Marginal Cost Click Save and Submit to sawe and submit. Click Save All Answers to save all answers. Save A

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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QUESTION 2
Match each of the terms to their description:
Entry
Exit
A. additional cost of producing one more unit
B. additional revenue gained from selling one more unit
C. a firm leaves the market when they incur losses
D. a firm joins a market in hopes of making profits
Price Taker
Marginal Revenue
E. Firms receive their price from the market
Marginal Cost
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Transcribed Image Text:QUESTION 2 Match each of the terms to their description: Entry Exit A. additional cost of producing one more unit B. additional revenue gained from selling one more unit C. a firm leaves the market when they incur losses D. a firm joins a market in hopes of making profits Price Taker Marginal Revenue E. Firms receive their price from the market Marginal Cost Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save A Type here to search X W 62°F <> <>
Expert Solution
Step 1

The firm enters when there is positive economic profit and exits when there is negative economic profit.

Firms are price takers when they have no market power over price.

Marginal revenue is the increase in total revenue with increase in output sold

Marginal cost is the increase in total cost with increase in output produced.

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