Ch. 4

• What is a competitive market?

  A market where firms can't influence prices
• Why can't individual firms influence prices in a competitive market?

  Due to competition from other firms
• What does a supply curve represent?

  Quantity supplied at any given price
• What is competitive supply?

  A situation where firms produce alternative products
• What is joint supply?

  Producing more than one product together
• What is producer surplus?

  The difference between received price and supply price
• How is producer surplus calculated?

  By subtracting supply price from received price