m竞争市场上的企业.ppt

* * These revenue concepts are analogous to the cost concepts (TC, ATC, MC) in the previous chapter. * This easy exercise requires students to apply the definitions from the previous slide. It also demonstrates that MR = P for a competitive firm. (The table in this exercise is similar to Table 1 in the chapter.) * * (The table on this slide is similar to Table 2 in the textbook.) For most students, seeing the complete table all at once is too much information. So, the table is animated as follows: Initially, the only columns displayed are the ones students saw at the end of the exercise in Active Learning 1: Q, TR, and MR. Then, TC appears, followed by MC. It might be useful to remind students of the relationship between MC and TC. Then, the Profit column appears. Students should be able to see that, at each value of Q, profit equals TR minus TC. The last column to appear is the change in profit. When the table is complete, we use it to show it is profitable to increase production whenever MR MC, such as at Q = 0, 1, or 2. it is profitable to reduce production whenever MC MR, such as at Q = 5. * * This slide is similar to Figure 1 in the chapter. I’ve omitted the AVC and ATC curves (which appear in Figure 1 in the chapter) because they are not needed at this point. * * The shutdown rule, in plain English, says: If the cost of shutting down is less than the benefit, the firm should shut down. * * In edit mode, it looks like the text boxes are on top of each other. But in presentation mode, the text boxes display only one at a time. * * The decision rule for whether to exit says: If the cost of exiting is greater than the benefit, the firm should exit. * * Similarly, a prospective entrant compares the benefits of entering the market (TR) with the costs (TC), and enters if the benefits exceed the costs. * Rather than tell students that profit equals (P – ATC) x Q, this exercise requires students to figure it out for themselve