竞争市场中的企业剖析.ppt

* * “Firms can freely enter or exit the market” means there are no barriers or impediments to entry or exit. E.g., the government does not restrict the number of firms in the market. * * 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. * * This slide is “hidden” and will not display in your presentation. I have included it here in case you would like to substitute it for “Active Learning 2A.” The height of the rectangle is P – ATC, profit per unit. The width of the rectangle is Q, the number of units. The area of the rectangle = height x width = (profit per unit) x (number of units) = total profit. * * This slide is “hidden” and will not display in your presentation. I have included it here in case