经济学原理·萨尔森--中山大学岭南学院ch8..ppt

CH.8. Analysis of Perfectly Competitive Markets A.Supply Behavior of the Competitive Firm the Competitive Firm: maximizes profits profits=total revenues-total costs the Competitive Firm: price-taker faces a completely horizontal demand curve the extra revenue gained from each extra unit sold is the market price Demand Curve Is Completely Elastic for a Perfectly Competitive Firm Supply Decision of Competitive Firm The maximum profit output comes at that output where marginal cost equals price. MC=P Firm’s Supply curve Firm’s Supply Curve Travels Down the MC Curve to the Shutdown Point. Firm’s Supply Curve Is Its Rising Marginal Cost Cure Firm’s Supply Curve Travels Down the MC Curve to the Shutdown Point M：zero-profit point (零利润点) P=AC=MC M’: shutdown point （停业点） P=AVC=MC B. Supply Behavior in Competitive Industries market supply curve: horizontally add all firms’ supply curves Add All Firms’ Supply Curves to Derive Market Supply Short-run and long-run equilibrium Short-run equilibrium: use the same fixed amount of plant and equipment. Long-run equilibrium: all factors are variable. Effect of Increase in Demand on Price Varies in Different Time Periods The long run for a competitive industry Zero-profit long-run equilibrium: P= MC = minimum long run AC = zero-profit price The long run equilibrium in a competitive industry is one with no economic profits. Long-Run Industry Supply Depends on Cost Conditions C. Special Cases of Competitive Markets demand rule: demand for a commodity ?, the price ? demand ?, the quantity demanded ? supply rule: supply of a commodity ?, the price ?, the quantity bought and sold ? Constant cost Increasing costs and diminishing returns Fixed supply and economic rent Backward-bending supply curve Constant-Cost Case Increasing costs and diminishing returns Factors with Fixed Supply Earn Rent Backward-Bending Supply Curve Shifts in supply An increased supply will decrea