Examlex
A refrigerator extracts heat Q from a cold reservoir.The heat exhausted to a hot reservoir
Purely Competitive Firm
A company that operates in a market where there are many buyers and sellers, each selling a homogeneous product with no single seller or buyer having the market power to influence prices.
Long-run Equilibrium
A state in which all economic forces such as supply and demand are balanced, and all firms are producing at a level where no new entrants will disrupt the market.
Minimum ATC
The lowest point on the average total cost curve, representing the most efficient scale of production for a firm.
Creative Destruction
A term coined by Joseph Schumpeter to describe the process by which old industries are destroyed and new ones are created as part of the evolution of capitalism.
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