1907 Ch06-1 Analysis of Perfectly Competitive Markets Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch06-1 Analysis of Perfectly Competitive Markets
07-2 0 例 Topics to be Discussed Perfectly Competitive Markets ·Profit Maximization Marginal Revenue,Marginal Cost,and Profit Maximization Choosing Output in the Short-Run The Competitive Firm's Short-Run Supply Curve Short-Run Market Supply Choosing Output in the Long-Run The Industry's Long-Run Supply Curve Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 07-2 Topics to be Discussed • Perfectly Competitive Markets • Profit Maximization • Marginal Revenue, Marginal Cost, and Profit Maximization • Choosing Output in the Short-Run • The Competitive Firm’s Short-Run Supply Curve • Short-Run Market Supply • Choosing Output in the Long-Run • The Industry’s Long-Run Supply Curve
1907 07-3 树 6.1 Perfectly Competitive Markets Characteristics of Perfectly Competitive Markets 1)Price taking 2)Product homogeneity 3)Free entry and exit Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 07-3 6.1 Perfectly Competitive Markets • Characteristics of Perfectly Competitive Markets 1) Price taking 2) Product homogeneity 3) Free entry and exit
07-4 0 Perfectly Competitive Markets ·Price Taking -The individual firm sells a very small share of the total market output and,therefore,cannot influence market price. The individual consumer buys too small a share of industry output to have any impact on market price. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 07-4 Perfectly Competitive Markets • Price Taking – The individual firm sells a very small share of the total market output and, therefore, cannot influence market price. – The individual consumer buys too small a share of industry output to have any impact on market price
190 07-5 Perfectly Competitive Markets ·Product Homogeneity -The products of all firms are perfect substitutes. -Examples Agricultural products,oil,copper,iron,lumber Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 07-5 Perfectly Competitive Markets • Product Homogeneity – The products of all firms are perfect substitutes. – Examples • Agricultural products, oil, copper, iron, lumber