Perfect Competition Market<br />Welcome <br />
Meaning of Market<br />A place / region where Sellers and buyers are interacted with goods and service by selling and purc...
Buyers and sellers
A place or region
Given price </li></li></ul><li>Perfect Competition Market<br />Classification  of Market<br />
Meaning of Perfect Competition Market<br />	“A Market situation in which a large number of producers or sellers producing ...
Meaning of Perfect Competition Market<br />	“A Market situation in which a large number of producers or sellers producing ...
Main features of Perfect Competition Market<br />
Main features of Perfect Competition Market<br />Example:  Agricultural products<br />
Meaning of Perfect Competition Market<br />	Nature of demand and AR, MR Curve of a firm  <br />Demand and AR, MR Curve of ...
Meaning of Perfect Competition Market<br />	Price determination in the industry <br />Excess supply<br />Supply Curve<br /...
Meaning of Perfect Competition Market<br />	Price determination in the industry <br />Industry  <br />Firm ( is a Price Ta...
Second  Condition for maximization of profit > MC curve cut MR curve  </li></ul>from bellow<br />
Meaning of Perfect Competition Market<br />	Price determination in the industry <br />Industry  <br />Firm ( is a Price Ta...
Second  Condition for maximization of profit is MC curve cut MR curve  </li></ul>from bellow<br />
Meaning of Perfect Competition Market<br />The firms equilibrium(Out put determination)<br /><ul><li>First Condition for m...
Second  Condition for maximization of profit is  MC curve cut MR curve  </li></ul>from bellow<br />Industry  <br />Firm ( ...
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Perfect Competitive Market

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Perfect competitive market

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Perfect Competitive Market

  1. 1. Perfect Competition Market<br />Welcome <br />
  2. 2. Meaning of Market<br />A place / region where Sellers and buyers are interacted with goods and service by selling and purchasing at a given price. It is considered as a Process <br /><ul><li>Goods and service
  3. 3. Buyers and sellers
  4. 4. A place or region
  5. 5. Given price </li></li></ul><li>Perfect Competition Market<br />Classification of Market<br />
  6. 6. Meaning of Perfect Competition Market<br /> “A Market situation in which a large number of producers or sellers producing and selling homogeneous product.” <br />
  7. 7. Meaning of Perfect Competition Market<br /> “A Market situation in which a large number of producers or sellers producing and selling homogeneous product.” <br />
  8. 8. Main features of Perfect Competition Market<br />
  9. 9. Main features of Perfect Competition Market<br />Example: Agricultural products<br />
  10. 10. Meaning of Perfect Competition Market<br /> Nature of demand and AR, MR Curve of a firm <br />Demand and AR, MR Curve of a firm <br />Price <br />Price=AR=MR <br />Output<br />
  11. 11. Meaning of Perfect Competition Market<br /> Price determination in the industry <br />Excess supply<br />Supply Curve<br />Price <br />Demand Curve<br />Excess Demand<br />Output<br />
  12. 12. Meaning of Perfect Competition Market<br /> Price determination in the industry <br />Industry <br />Firm ( is a Price Taker)<br />Supply Curve<br />Price <br />Price <br />Price=AR=MR <br />Demand Curve<br />Output<br />Output<br /><ul><li>First Condition for maximization of profit > MR= MC
  13. 13. Second Condition for maximization of profit > MC curve cut MR curve </li></ul>from bellow<br />
  14. 14. Meaning of Perfect Competition Market<br /> Price determination in the industry <br />Industry <br />Firm ( is a Price Taker)<br />Supply Curve<br />Price <br />Price <br />Price=AR=MR<br />What is level of output of a firm ? <br />Demand Curve<br />Output<br />Output<br /><ul><li>First Condition for maximization of profit is MR= MC
  15. 15. Second Condition for maximization of profit is MC curve cut MR curve </li></ul>from bellow<br />
  16. 16. Meaning of Perfect Competition Market<br />The firms equilibrium(Out put determination)<br /><ul><li>First Condition for maximization of profit is MR= MC
  17. 17. Second Condition for maximization of profit is MC curve cut MR curve </li></ul>from bellow<br />Industry <br />Firm ( is a Price Taker)<br />MC<br />Supply Curve<br />MC=MR<br />Price <br />Price <br />E<br />Price=AR=MR<br />O<br />M<br />Demand Curve<br />Output<br />Output<br />E0<br />
  18. 18. Meaning of Perfect Competition Market<br />Short run equilibrium of a firm with abnormal profit <br />Firm with Profit <br />MC<br />MC=MR<br />Price <br />AC<br />Price=AR=MR<br />E<br />Profit<br />O<br />M<br />Output<br />
  19. 19. Meaning of Perfect Competition Market<br />Short run equilibrium of a firm with No profit No Losses <br />Firm with Profit <br />MC<br />AC<br />MC=MR<br />Price <br />Price=AR=MR<br />E<br />O<br />M<br />Output<br />
  20. 20. Meaning of Perfect Competition Market<br />Short run equilibrium of a firm with Losses<br />Firm with Profit <br />AC<br />MC<br />Price <br />Price=AR=MR<br />E<br />Losses<br />MC=MR<br />O<br />M<br />Output<br />
  21. 21. Meaning of Perfect Competition Market<br />Long run equilibrium of a firm with Normal Profit<br />Firm with Profit <br />LMC<br />LAC<br />MC=MR<br />Price <br />Price=AR=MR<br />E<br />O<br />M<br />Output<br />
  22. 22. Perfect Competition Market<br />Thanks <br />
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