英文9--完全竞争资料.pptVIP

Summary In a market with free entry and exit, profits are driven to zero in the long run and all firms produce at the efficient scale. Changes in demand have different effects over different time horizons. Class assignments Cha 6: 5 ,7,8,9,10 Homework after class: Cha 6:2,3,4 * 43 P = AR = MR Profit Maximization for the Competitive Firm... Costs and Revenue AC MR Q* Q MC Profit Maximization for the Competitive Firm Profit maximization occurs at the quantity where marginal revenue equals marginal cost. When MR = MC ， Profit is maximized. P=MR, P=MC The Firm’s Short-Run Decision to