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Lecture Microeconomics (20/e): Chapter 10 - Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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Lecture Microeconomics (20/e): Chapter 10 - Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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Chapter 10 - Pure competition in the short run. After studying this chapter, you should be able to: Give the names and summarize the main characteristics of the four basic market models, list the conditions required for purely competitive markets, explain how demand is seen by a purely competitive seller,. | Chapter 10 Pure Competition in the Short Run Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Explanations and characteristics of the four models are outlined at the beginning of this chapter, then the characteristics of a purely competitive industry are detailed. There is an introduction to the concept of the perfectly elastic demand curve facing an individual firm in a purely competitive industry. Next, the total, average, and marginal revenue schedules are presented in numeric and graphic form. Using the cost schedules from the previous chapter, the idea of profit maximization is explored. The total revenue and total cost approach is analyzed first because of its simplicity. More space is devoted to explaining the MR = MC rule, and to demonstrating how this rule applies in all market structures, not just in pure competition. Next, the firm’s short‑run supply schedule is shown to | Chapter 10 Pure Competition in the Short Run Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Explanations and characteristics of the four models are outlined at the beginning of this chapter, then the characteristics of a purely competitive industry are detailed. There is an introduction to the concept of the perfectly elastic demand curve facing an individual firm in a purely competitive industry. Next, the total, average, and marginal revenue schedules are presented in numeric and graphic form. Using the cost schedules from the previous chapter, the idea of profit maximization is explored. The total revenue and total cost approach is analyzed first because of its simplicity. More space is devoted to explaining the MR = MC rule, and to demonstrating how this rule applies in all market structures, not just in pure competition. Next, the firm’s short‑run supply schedule is shown to be the same as its marginal-cost curve at all points above the average-variable-cost curve. Then the short‑run competitive equilibrium is discussed at the firm and industry levels. Finally, this chapter’s Last Word discusses firms’ decisions to shut down in the short run and the losses incurred due to fixed costs. Four Market Models Pure competition Pure monopoly Monopolistic competition Oligopoly Pure Competition Monopolistic Competition Oligopoly Pure Monopoly Market Structure Continuum LO1 After an overview of all 4 market models, the chapter focuses on pure competition. The other market models are examples of imperfect competition and will be discussed in future chapters. Pure Competition: Characteristics Very large numbers of sellers Standardized product “Price takers” Easy entry and exit LO2 Very large numbers of independent sellers each acting alone cannot influence the market price by increasing or decreasing their output because each has such a miniscule part of the .
TÀI LIỆU LIÊN QUAN
Lecture Microeconomics: Theory and applications (12th edition): Chapter 1 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 2 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 3 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 4 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 5 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 6 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 7 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 8 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 9 - Browning, Zupan
Lecture Microeconomics: Theory and applications (12th edition): Chapter 10 - Browning, Zupan
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