Economists Measure a Market's Domination by a Small Number of Firms

question 129

Short Answer

Economists measure a market's domination by a small number of firms with a statistic called the

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Definitions:

Total Product Curve

A graphical representation showing how the total output of a firm changes as the amount of a single input changes, holding all other inputs constant.

Average Product

The output per unit of input, calculated by dividing total production by the number of units of input.

Marginal Product

The additional output derived from the use of one more unit of a production input, while holding other inputs constant.

Technologically Efficient

A state of production where it is not possible to increase the production of one good without decreasing the production of another, given current technology.