曼昆 经济学原理（英文版）（全套课件529P）.ppt

课件 Firms in Competitive Markets Chapter 14 LEARNING OBJECTIVES: what characteristics make a market competitive. how competitive firms decide how much output to produce. how competitive firms decide when to shut down production temporarily. how competitive firms decide whether to exit or enter a market. how firm behavior determines a market’s short-run and long-run supply curves. The Meaning of Competition A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. The goods offered by the various sellers are largely the same. Firms can freely enter or exit the market. The Meaning of Competition As a result of its characteristics, the perfectly competitive market has the following outcomes: The actions of any single buyer or seller in the market have a negligible impact on the market price. Each buyer and seller takes the market price as given. The Meaning of Competition Buyers and sellers in competitive markets are said to be price takers. Buyers and sellers must accept the price determined by the market. Example of price taker Assume that you inherited 1000 shares of stock for Bank of China. At the market-determined price, you could sell as few or as many shares as you wish. No one can buy below market price. No one can sell above market price. Total, Average, and Marginal Revenue for a Competitive Firm Revenue of a Competitive Firm Total revenue for a firm is the selling price times the quantity sold. TR = (P X Q) Revenue of a Competitive Firm Total revenue is proportional to the amount of output. Revenue of a Competitive Firm Average revenue tells us how much revenue a firm receives for the typical unit sold. Revenue of a Competitive Firm In perfect competition, average revenue equals the price of the good. Revenue of a Competitive Firm Marginal revenue is the change in total revenue from an additional unit sold. MR =?TR/ ?Q Revenue of a Competitive Firm For competitive firms, marginal revenue equals the