微观经济学ppt11.pptVIP

Firms in Perfectly Competitive Markets Perfect Competition in the Market for Organic Apples After studying this chapter, you should be able to: Define a perfectly competitive market, and explain why a perfect competitor faces a horizontal demand curve. Explain how a perfect competitor decides how much to produce. Use graphs to show a firm’s profit or loss. Explain why firms may shut down temporarily. Explain how entry and exit ensure that firms earn zero economic profit in the long run. Explain how perfect competition leads to economic efficiency. Firms in Perfectly Competitive Marke