《曼昆微观经济学第五版 第十四章 课文ppt英文版》由会员分享，可在线阅读，更多相关《曼昆微观经济学第五版 第十四章 课文ppt英文版（60页珍藏版）》请在金锄头文库上搜索。
1、,Firms in Competitive Markets,Chapter 14,Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.,The Meaning of C
2、ompetition,A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. The goods offered by the various sellers are largely the same. Firms can freely enter or exit the market.,The Meaning of Competition,As a result of its characteristics, the p
3、erfectly competitive market has the following outcomes: The actions of any single buyer or seller in the market have a negligible impact on the market price. Each buyer and seller takes the market price as given.,The Meaning of Competition,Buyers and sellers in competitive markets are said to be pri
4、ce takers. Buyers and sellers must accept the price determined by the market.,Revenue of a Competitive Firm,Total revenue for a firm is the selling price times the quantity sold. TR = (P X Q),Revenue of a Competitive Firm,Total revenue is proportional to the amount of output.,Revenue of a Competitiv
5、e Firm,Average revenue tells us how much revenue a firm receives for the typical unit sold.,Revenue of a Competitive Firm,In perfect competition, average revenue equals the price of the good.,Revenue of a Competitive Firm,Marginal revenue is the change in total revenue from an additional unit sold.
6、MR =TR/ Q,Revenue of a Competitive Firm,For competitive firms, marginal revenue equals the price of the good.,Total, Average, and Marginal Revenue for a Competitive Firm,Profit Maximization for the Competitive Firm,The goal of a competitive firm is to maximize profit. This means that the firm will w
7、ant to produce the quantity that maximizes the difference between total revenue and total cost.,Profit Maximization: A Numerical Example,Profit Maximization for the Competitive Firm.,Quantity,0,ATC,AVC,Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.,Profit Maximization for th
8、e Competitive Firm,Profit maximization occurs at the quantity where marginal revenue equals marginal cost.,Profit Maximization for the Competitive Firm,When MR MC increase Q,When MR MC decrease Q,When MR = MC Profit is maximized.,The Marginal-Cost Curve and the Firms Supply Decision.,Quantity,0,MC,A
9、TC,AVC,Copyright 2001 by Harcourt, Inc. All rights reserved,The Firms Short-Run Decision to Shut Down,A shutdown refers to a short-run decision not to produce anything during a specific period of time because of current market conditions. Exit refers to a long-run decision to leave the market.,The F
10、irms Short-Run Decision to Shut Down,The firm considers its sunk costs when deciding to exit, but ignores them when deciding whether to shut down. Sunk costs are costs that have already been committed and cannot be recovered.,The Firms Short-Run Decision to Shut Down,The firm shuts down if the reven
11、ue it gets from producing is less than the variable cost of production. Shut down if TR VC Shut down if TR/Q VC/Q Shut down if P AVC,The Firms Short-Run Decision to Shut Down.,Quantity,ATC,AVC,0,Costs,The Firms Short-Run Decision to Shut Down,The portion of the marginal-cost curve that lies above av
12、erage variable cost is the competitive firms short-run supply curve.,The Firms Long-Run Decision to Exit or Enter a Market,In the long-run, the firm exits if the revenue it would get from producing is less than its total cost. Exit if TR TC Exit if TR/Q TC/Q Exit if P TC Enter if TR/Q TC/Q Enter if
13、P ATC,The Competitive Firms Long-Run Supply Curve.,Quantity,MC = Long-run S,ATC,AVC,0,Costs,The Competitive Firms Long-Run Supply Curve,The competitive firms long-run supply curve is the portion of its marginal-cost curve that lies above average total cost.,The Competitive Firms Long-Run Supply Curv
14、e.,Quantity,MC,ATC,AVC,0,Costs,The Firms Short-Run and Long-Run Supply Curves,Short-Run Supply Curve The portion of its marginal cost curve that lies above average variable cost. Long-Run Supply Curve The marginal cost curve above the minimum point of its average total cost curve.,Measuring Profit i
15、n the Graph for the Competitive Firm.,Quantity,0,Price,P = AR = MR,ATC,MC,P,Profit-maximizing quantity,a. A Firm with Profits,Measuring Profit in the Graph for the Competitive Firm.,Quantity,0,Price,P = AR = MR,ATC,MC,P,Q,Loss-minimizing quantity,b. A Firm with Losses,Supply in a Competitive Market,
16、Market supply equals the sum of the quantities supplied by the individual firms in the market.,The Short Run: Market Supply with a Fixed Number of Firms,For any given price, each firm supplies a quantity of output so that its marginal cost equals price. The market supply curve reflects the individual firms marginal cost curves.,
