ECO100Y5 Chapter Notes - Chapter 12: Fixed Cost, Variable Cost
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ECO100Y5 Full Course Notes
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Chapter 12 perfect competition and the supply curve. A price-taking producer is a producer whose actions have no effect on the market price of the good or service it sells. A price-taking consumer is a consumer whose actions have no effect on the market price of the good or service he or she buys. A perfectly competitive market is a market in which all market participants are. A perfectly competitive industry is an industry in which all producers are price- price-takers takers. First for an industry to be perfectly competitive, it must contain many producers, none of whom have a large market share. A producer"s market share is the fraction of the total industry output accounted for by that producer"s output. A good is a standardized product, also known as a commodity, when consumers regard the products of different producers as the same good.