管理者经济学7(视角独特,专门为管理者而写的经济学).pptVIP

Chapter 7 Market Structure: Perfect Competition Perfect Competition Characterized by A large number of firms in the market An undifferentiated product Ease of entry into the market Complete information available to all market participants Perfect Competition Distinguished between behavior of individual firms and outcomes for entire market No single firm has any influence on the price of a product Price-taker: a firm cannot influence the price of its product, thus it can sell any amount of output at that price Perfectly Competitive Profit Maximization Marginal Revenue Price equals marginal revenue for a perfectly competitive firm because the firm does not have to lower the price to sell more units of output The profit-maximizing level of output occurs where marginal revenue equals marginal cost because any other level of output will result in smaller profit Determining the Amount of Profit Earned If you know total revenue and total cost, you can calculate amount of profit Using TR and TC function graphs, you can calculate level of profit-maximizing by finding the greatest distance between the two curves and calculate the profit at that point The Shutdown Point The shutdown point for perfectly competitive firm: the price, which just equals AVC, below which it is more profitable for the perfectly competitive firm to shut down than to continue to produce The supply curve is that portion of its marginal cost curve above minimum AVC Supply Curve for Perfectly Competitive Industry The supply curve shows the output produced by all perfectly competitive firms in the industry at different prices The curve will be flatter than the firm’s supply curve because it reflects output produced by all firms in the industry at each price Long-run Adjustment Two factors: Entry and exit by new and existing firms Changes in the scale of operations by all firms These factors can occur simultaneously Long-run Adjustment Equilibrium point for the perfectly competitive firm: the point whe