Table of Contents
Perfect Competition: Short Run and Long Run
Features of a Perfectly Competitive Market
The Short-run Output Decision
The Firm’s Total Cost Structure (Reviewed)
The Revenue Structure of the Competitive Business Firm
Computing the Total Revenue of a Price-taker
The Totals Approach to Profit Maximization
The Marginal Approach
Marginal Revenue
The Marginal Rule for Profit Maximization
Profit Maximization Using the Marginal Approach
Economic Profit
Shut-down Decision
The Shut-down Decision
The Shut-down Decision
Short-run Supply Curve
Short-run Supply Curve
The Market Supply Curve
A Market in Long-run Equilibrium
A Market in Long-run Equilibrium
A Market in Long-run Equilibrium
The Long-run Supply Curve for an Increasing-cost Industry
Industry Output and Average Production Cost
Drawing the Long-run Market Supply Curve
An Increase in Demand and the Incentive to Enter
The Long-run Effects of an Increase in Demand
The Long-run Effects of an Increase in Demand
Long-run Supply Curve for an Constant-cost Industry
Long-run Supply Curve for the Ice Industry
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