This document discusses the behavior of competitive firms in both the short run and long run. It begins by defining key concepts for competitive markets like price taking firms and perfect competition. It then explains how competitive firms determine optimal output and shutdown decisions in the short run by maximizing profits where marginal revenue equals marginal cost. The document also discusses market supply curves for competitive industries and how taxes impact equilibrium. Finally, it covers long-run decisions for competitive firms regarding optimal output levels and shutdown points based on long-run costs.
Perfect competition requires firms be price takers, products be homogeneous, and there be free entry and exit in the market. A competitive firm maximizes profits by producing at the quantity where marginal revenue equals marginal cost. In long-run equilibrium, competitive firms earn zero economic profits as entry and exit of firms causes the market supply curve to shift until it is tangent to the average cost curve. Consumer and producer surplus are measures of welfare in a competitive market. Import quotas and tariffs reduce welfare by creating deadweight loss. Taxes can impact buyers and sellers depending on price elasticities of supply and demand. Anti-trust laws aim to promote competition by preventing collusion and artificial restrictions on output.
- Pure competition is characterized by many small firms, standardized products, firms being price takers, easy entry and exit in the industry, and each firm operating at minimum efficient scale.
- Individual firms are profit maximizers and will produce at the quantity where marginal revenue equals marginal cost to maximize profits or minimize losses.
- The market will reach equilibrium when the quantity supplied by all firms equals the quantity demanded at the market-clearing price, where the market supply curve is the horizontal sum of all individual firms' marginal cost curves.
1) The document discusses the characteristics and profit maximization behavior of firms under pure competition in the short run.
2) It describes how purely competitive firms are price takers and will produce the quantity where marginal revenue equals marginal cost to maximize profits or minimize losses, depending on the market price.
3) The document provides examples using tables and graphs to illustrate how competitive firms determine their optimal output level and whether to operate, shutdown, or produce at a loss.
Perfect competition is a market structure characterized by numerous small firms, homogeneous products, free entry and exit of firms, and perfect information. Under perfect competition, firms are price takers and cannot influence the market price. The equilibrium price is determined where industry demand equals industry supply and firms produce where price equals marginal cost, resulting in an efficient allocation of resources.
Agri 2312 chapter 7 economics of input and product substitutionRita Conley
This chapter discusses concepts related to production including isoquants, iso-cost lines, and production possibilities frontiers. It examines finding the least-cost combination of inputs and the profit-maximizing combination of outputs. A change in input or output prices will shift the iso-cost line or iso-revenue line and alter the optimal production levels. The key concepts are that production is most efficient where the marginal rate of technical substitution equals the input price ratio and profits are maximized where the marginal rate of product transformation equals the output price ratio.
1) The document discusses the concept of pure competition and profit maximization for firms in pure competition. It defines the characteristics of pure competition and how demand is perceived by purely competitive firms as perfectly elastic.
2) It then covers the two approaches firms use to maximize profits in the short-run: total revenue-total cost and marginal revenue-marginal cost. Both approaches are shown to result in the rule of producing at the quantity where marginal revenue equals marginal cost.
3) The document concludes by discussing how purely competitive firms maximize profits in the long-run through free entry and exit until economic profits are driven down to zero and price equals minimum average total cost.
1) The document discusses cost-volume-profit (CVP) analysis, which is used to determine the break-even point where revenues and expenses are equal.
2) It provides examples of how to calculate the break-even point using the equation approach, contribution margin approach, and contribution margin ratio for a surfboard company.
3) Graphs are used to illustrate the relationships between costs, sales, and profits at different production volumes.
This chapter discusses different types of market structures beyond perfect competition, including imperfect competition in both selling and buying. It provides examples of monopolistic competition, oligopolies, and monopolies as imperfect competitors in selling, characterized by their ability to influence prices through product differentiation or barriers to entry. On the buying side, the chapter examines monopsonistic competition, oligopsonies, and monopsonies as imperfect competitors who are not price takers. The chapter concludes by outlining various governmental regulatory measures implemented to counteract the adverse effects of imperfect competition in markets.
Perfect competition requires firms be price takers, products be homogeneous, and there be free entry and exit in the market. A competitive firm maximizes profits by producing at the quantity where marginal revenue equals marginal cost. In long-run equilibrium, competitive firms earn zero economic profits as entry and exit of firms causes the market supply curve to shift until it is tangent to the average cost curve. Consumer and producer surplus are measures of welfare in a competitive market. Import quotas and tariffs reduce welfare by creating deadweight loss. Taxes can impact buyers and sellers depending on price elasticities of supply and demand. Anti-trust laws aim to promote competition by preventing collusion and artificial restrictions on output.
- Pure competition is characterized by many small firms, standardized products, firms being price takers, easy entry and exit in the industry, and each firm operating at minimum efficient scale.
- Individual firms are profit maximizers and will produce at the quantity where marginal revenue equals marginal cost to maximize profits or minimize losses.
- The market will reach equilibrium when the quantity supplied by all firms equals the quantity demanded at the market-clearing price, where the market supply curve is the horizontal sum of all individual firms' marginal cost curves.
1) The document discusses the characteristics and profit maximization behavior of firms under pure competition in the short run.
2) It describes how purely competitive firms are price takers and will produce the quantity where marginal revenue equals marginal cost to maximize profits or minimize losses, depending on the market price.
3) The document provides examples using tables and graphs to illustrate how competitive firms determine their optimal output level and whether to operate, shutdown, or produce at a loss.
Perfect competition is a market structure characterized by numerous small firms, homogeneous products, free entry and exit of firms, and perfect information. Under perfect competition, firms are price takers and cannot influence the market price. The equilibrium price is determined where industry demand equals industry supply and firms produce where price equals marginal cost, resulting in an efficient allocation of resources.
Agri 2312 chapter 7 economics of input and product substitutionRita Conley
This chapter discusses concepts related to production including isoquants, iso-cost lines, and production possibilities frontiers. It examines finding the least-cost combination of inputs and the profit-maximizing combination of outputs. A change in input or output prices will shift the iso-cost line or iso-revenue line and alter the optimal production levels. The key concepts are that production is most efficient where the marginal rate of technical substitution equals the input price ratio and profits are maximized where the marginal rate of product transformation equals the output price ratio.
1) The document discusses the concept of pure competition and profit maximization for firms in pure competition. It defines the characteristics of pure competition and how demand is perceived by purely competitive firms as perfectly elastic.
2) It then covers the two approaches firms use to maximize profits in the short-run: total revenue-total cost and marginal revenue-marginal cost. Both approaches are shown to result in the rule of producing at the quantity where marginal revenue equals marginal cost.
3) The document concludes by discussing how purely competitive firms maximize profits in the long-run through free entry and exit until economic profits are driven down to zero and price equals minimum average total cost.
1) The document discusses cost-volume-profit (CVP) analysis, which is used to determine the break-even point where revenues and expenses are equal.
2) It provides examples of how to calculate the break-even point using the equation approach, contribution margin approach, and contribution margin ratio for a surfboard company.
3) Graphs are used to illustrate the relationships between costs, sales, and profits at different production volumes.
This chapter discusses different types of market structures beyond perfect competition, including imperfect competition in both selling and buying. It provides examples of monopolistic competition, oligopolies, and monopolies as imperfect competitors in selling, characterized by their ability to influence prices through product differentiation or barriers to entry. On the buying side, the chapter examines monopsonistic competition, oligopsonies, and monopsonies as imperfect competitors who are not price takers. The chapter concludes by outlining various governmental regulatory measures implemented to counteract the adverse effects of imperfect competition in markets.
Agri 2312 chapter 6 introduction to production and resource useRita Conley
This document provides an introduction to production and resource use. It discusses key concepts including the conditions of perfect competition, classification of inputs, production relationships, and assessing costs. Specifically, it defines inputs as labor, capital, land, and management. It introduces the total physical product curve and shows the three stages of production. It also discusses the relationships between marginal physical product, average physical product, and marginal cost. Optimal output and input levels are where marginal revenue/value equals marginal cost/input cost.
1. A perfectly competitive market has six key characteristics: many small firms, identical products, free entry and exit, perfect information, price-taking behavior on the part of buyers and sellers.
2. For a firm in perfect competition, marginal revenue equals price and the profit-maximizing level of output occurs where marginal revenue equals marginal cost.
3. In the long run, firms will enter or exit the market until economic profits are driven down to zero and the industry reaches long-run competitive equilibrium.
Managerial Accounting Garrison Noreen Brewer Chapter 06Asif Hasan
This document discusses cost-volume-profit analysis and break-even analysis. It provides information on contribution margin, contribution margin ratio, fixed and variable expenses, and how to calculate break-even points using both the equation method and contribution margin method. Specifically, it uses data from a company called Racing Bicycle Company to demonstrate how to calculate their break-even point in both units (400 bikes) and sales dollars ($200,000) using the equation method. It also outlines the two key equations for the contribution margin method of calculating break-even points.
This revision webinar focuses on the short run costs of businesses. It includes with examples a distinction between fixed and variable costs, average, marginal and total costs and short and long run costs.
This document discusses government policies related to competitive markets. It begins by defining consumer surplus and producer surplus, which are used to evaluate the gains and losses from policies. Price controls are examined as an example, showing the deadweight loss. Other topics covered include the efficiency of competitive markets; minimum prices; price supports and production quotas; import quotas and tariffs; and the impact of taxes and subsidies. Specific examples analyzed include price controls on natural gas and policies related to kidney markets.
This document provides an outline and overview of input demand in labor and land markets. It discusses key concepts like derived demand, diminishing returns, and marginal revenue product. It examines how firms determine demand for inputs like labor based on marginal revenue product exceeding input prices. Demand for land is determined similarly based on the value of output produced. The document outlines factors that can shift input demand curves, like changes in output demand, input prices, and technology.
This document discusses cost-volume-profit (CVP) analysis and break-even point calculations. It contains examples using a bicycle company called Racing Bicycle Company. It explains contribution margin, how to calculate break-even points using the equation method and contribution margin method, and how to determine the sales volume needed to achieve a target profit level. Graphs and calculations are provided to illustrate CVP relationships and the effects of changes in variables such as sales price, fixed costs, and volume.
1. The document discusses pricing of inputs in markets, including labor and capital. A profit-maximizing firm will hire inputs up to the point where the marginal revenue product of each input equals its price.
2. Capital and time are also inputs that firms demand. The demand for capital is related to interest rates - as interest rates increase, the rental rate for capital increases, decreasing the demand.
3. Individual savings and firms' demand for loans determine equilibrium interest rates. Higher savings increases loan supply, lowering rates, while more investment by firms increases loan demand and rates.
This document contains review questions about perfect competition. It includes questions about profit maximization for a perfectly competitive firm given cost and revenue information. It asks the student to determine the optimal output level and profits for a small tomato grower facing different market prices. It also contains questions about break-even points, short-run supply curves, and long-run equilibrium for a perfectly competitive industry. The student is asked to apply concepts of marginal cost, average cost, and profit maximization to firms operating under perfect competition.
Oligopoly is a market structure with a small number of firms that produce either homogeneous or differentiated products. These firms must consider how their actions will affect competitors due to interdependence. There are substantial barriers to entry in oligopolistic markets. Firms may collude to act like a monopoly and earn profits, or they may compete and drive prices down to zero profits. However, collusion is difficult to maintain because firms have an incentive to secretly cut prices. Oligopolistic markets can involve price leadership or operate according to Sweezy's kinked demand curve model, which explains price rigidity. Concentration ratios and the Herfindahl index measure the degree of concentration in an industry. Mergers are evaluated based on
- Firms demand inputs based on the demand for the outputs they can produce. Inputs are complementary or substitutable, and subject to diminishing returns.
- A firm will demand an input as long as its marginal revenue product exceeds its cost. For a single variable input like labor, the marginal revenue product curve determines the firm's demand in the short run.
- When a factor price changes, firms substitute toward cheaper inputs but also adjust output, affecting demand for all inputs. Higher wages induce substitution from labor to capital through technology changes.
1. The document discusses market structures and pure monopoly. A pure monopoly is characterized by a single seller, no close substitutes, price making ability, and blocked entry from competitors.
2. Barriers to entry for competitors of a pure monopoly include economies of scale, legal protections like patents, and control of essential resources. A natural monopoly exists when average total costs decline continuously with increasing output.
3. Under pure monopoly, the profit-maximizing firm will produce at the quantity where marginal revenue equals marginal cost and charge a price determined by the demand curve. This results in a higher price and lower quantity than under perfect competition.
AP MIcro Monopolistic Competition and OligolopyMrRed
This document summarizes key concepts about monopolistic competition and oligopoly market structures. It discusses how monopolistic competition involves a relatively large number of sellers offering differentiated products, with easy entry and exit into the market. Firms have some control over price in the short run but experience zero economic profits in the long run. The document also describes how oligopolies have a small number of large producers offering either homogeneous or differentiated products, with strategic interdependence between firms. Oligopolies can involve collusion, price leadership, or noncooperative behavior modeled using game theory.
Agri 2312 chapter 6 introduction to production and resource useRita Conley
This document provides an introduction to production and resource use. It discusses key concepts including the conditions of perfect competition, classification of inputs, production relationships, and assessing costs. Specifically, it defines inputs as labor, capital, land, and management. It introduces the total physical product curve and shows the three stages of production. It also discusses the relationships between marginal physical product, average physical product, and marginal cost. Optimal output and input levels are where marginal revenue/value equals marginal cost/input cost.
1. A perfectly competitive market has six key characteristics: many small firms, identical products, free entry and exit, perfect information, price-taking behavior on the part of buyers and sellers.
2. For a firm in perfect competition, marginal revenue equals price and the profit-maximizing level of output occurs where marginal revenue equals marginal cost.
3. In the long run, firms will enter or exit the market until economic profits are driven down to zero and the industry reaches long-run competitive equilibrium.
Managerial Accounting Garrison Noreen Brewer Chapter 06Asif Hasan
This document discusses cost-volume-profit analysis and break-even analysis. It provides information on contribution margin, contribution margin ratio, fixed and variable expenses, and how to calculate break-even points using both the equation method and contribution margin method. Specifically, it uses data from a company called Racing Bicycle Company to demonstrate how to calculate their break-even point in both units (400 bikes) and sales dollars ($200,000) using the equation method. It also outlines the two key equations for the contribution margin method of calculating break-even points.
This revision webinar focuses on the short run costs of businesses. It includes with examples a distinction between fixed and variable costs, average, marginal and total costs and short and long run costs.
This document discusses government policies related to competitive markets. It begins by defining consumer surplus and producer surplus, which are used to evaluate the gains and losses from policies. Price controls are examined as an example, showing the deadweight loss. Other topics covered include the efficiency of competitive markets; minimum prices; price supports and production quotas; import quotas and tariffs; and the impact of taxes and subsidies. Specific examples analyzed include price controls on natural gas and policies related to kidney markets.
This document provides an outline and overview of input demand in labor and land markets. It discusses key concepts like derived demand, diminishing returns, and marginal revenue product. It examines how firms determine demand for inputs like labor based on marginal revenue product exceeding input prices. Demand for land is determined similarly based on the value of output produced. The document outlines factors that can shift input demand curves, like changes in output demand, input prices, and technology.
This document discusses cost-volume-profit (CVP) analysis and break-even point calculations. It contains examples using a bicycle company called Racing Bicycle Company. It explains contribution margin, how to calculate break-even points using the equation method and contribution margin method, and how to determine the sales volume needed to achieve a target profit level. Graphs and calculations are provided to illustrate CVP relationships and the effects of changes in variables such as sales price, fixed costs, and volume.
1. The document discusses pricing of inputs in markets, including labor and capital. A profit-maximizing firm will hire inputs up to the point where the marginal revenue product of each input equals its price.
2. Capital and time are also inputs that firms demand. The demand for capital is related to interest rates - as interest rates increase, the rental rate for capital increases, decreasing the demand.
3. Individual savings and firms' demand for loans determine equilibrium interest rates. Higher savings increases loan supply, lowering rates, while more investment by firms increases loan demand and rates.
This document contains review questions about perfect competition. It includes questions about profit maximization for a perfectly competitive firm given cost and revenue information. It asks the student to determine the optimal output level and profits for a small tomato grower facing different market prices. It also contains questions about break-even points, short-run supply curves, and long-run equilibrium for a perfectly competitive industry. The student is asked to apply concepts of marginal cost, average cost, and profit maximization to firms operating under perfect competition.
Oligopoly is a market structure with a small number of firms that produce either homogeneous or differentiated products. These firms must consider how their actions will affect competitors due to interdependence. There are substantial barriers to entry in oligopolistic markets. Firms may collude to act like a monopoly and earn profits, or they may compete and drive prices down to zero profits. However, collusion is difficult to maintain because firms have an incentive to secretly cut prices. Oligopolistic markets can involve price leadership or operate according to Sweezy's kinked demand curve model, which explains price rigidity. Concentration ratios and the Herfindahl index measure the degree of concentration in an industry. Mergers are evaluated based on
- Firms demand inputs based on the demand for the outputs they can produce. Inputs are complementary or substitutable, and subject to diminishing returns.
- A firm will demand an input as long as its marginal revenue product exceeds its cost. For a single variable input like labor, the marginal revenue product curve determines the firm's demand in the short run.
- When a factor price changes, firms substitute toward cheaper inputs but also adjust output, affecting demand for all inputs. Higher wages induce substitution from labor to capital through technology changes.
1. The document discusses market structures and pure monopoly. A pure monopoly is characterized by a single seller, no close substitutes, price making ability, and blocked entry from competitors.
2. Barriers to entry for competitors of a pure monopoly include economies of scale, legal protections like patents, and control of essential resources. A natural monopoly exists when average total costs decline continuously with increasing output.
3. Under pure monopoly, the profit-maximizing firm will produce at the quantity where marginal revenue equals marginal cost and charge a price determined by the demand curve. This results in a higher price and lower quantity than under perfect competition.
AP MIcro Monopolistic Competition and OligolopyMrRed
This document summarizes key concepts about monopolistic competition and oligopoly market structures. It discusses how monopolistic competition involves a relatively large number of sellers offering differentiated products, with easy entry and exit into the market. Firms have some control over price in the short run but experience zero economic profits in the long run. The document also describes how oligopolies have a small number of large producers offering either homogeneous or differentiated products, with strategic interdependence between firms. Oligopolies can involve collusion, price leadership, or noncooperative behavior modeled using game theory.
This document discusses demand theory and the concept of elasticity in economics. It defines demand as a buyer's willingness and ability to pay for a good or service. The key factors that influence demand are outlined as price, income of consumers, availability of substitutes, and cross-prices of related goods. Elasticity measures the responsiveness of quantity demanded to changes in price or other factors. Price elasticity is computed by comparing the percentage changes in quantity and price. Demand can be inelastic, elastic, or unit elastic depending on the elasticity value. The relationship between elasticity, total revenue, and marginal revenue is also examined.
The document discusses the concept of perfect competition in economics. It provides the key characteristics that define a perfectly competitive market including that there are many small firms, no barriers to entry or exit, identical products, and complete information. Firms are price takers and seek to maximize profits by producing where marginal cost equals marginal revenue. In the long run, perfect competition leads to zero economic profits as new firms enter if profits are positive and firms exit if losses occur.
Session 10 firms in competitive markets May Primadani
A perfectly competitive market has many small firms, identical products, and free entry and exit. Each firm is a price taker and maximizes profits by producing where marginal revenue equals marginal cost. In the short run, firms will shut down if price is below average variable cost, while in the long run firms will exit if price is below average total cost. Market supply results from the aggregation of individual firm supplies. In the long run, entry and exit of firms drives the market to equilibrium with zero profits.
The document discusses the characteristics and behavior of firms in a perfectly competitive market. It explains that in the short run, a competitive firm will shut down if price is below average variable cost, while in the long run it will exit the market if price is below average total cost. The firm's marginal cost curve represents its supply curve. The market supply curve is determined by the summation of individual firms' supply. In the long run, free entry and exit will drive profits to zero.
This document provides an overview of perfect competition, including:
1) The key characteristics of a perfectly competitive market structure with many small firms, standardized products, no barriers to entry or exit, and price-taking behavior.
2) How individual firms operate as price-takers in both the short-run and long-run, facing a perfectly elastic demand curve set by the market price.
3) The process by which perfect competition leads to zero economic profits in the long-run through the entry and exit of firms in response to changes in market conditions.
The document defines and explains the characteristics of perfect competition. It states that a perfectly competitive market has many small firms, identical products, free entry and exit, and perfect information. Firms are price takers and the industry supply and demand curve determines price. The individual firm's demand curve is perfectly elastic and it will produce where price equals marginal cost. In the short run, firms can experience super-normal profits, normal profits, losses or exit the market if average costs exceed average revenue. In long run equilibrium, firms earn only normal profits.
This document provides an overview of perfect competition, including:
- The characteristics of a perfectly competitive market structure with many small firms, standardized products, and firms as price takers.
- How demand curves work for individual firms under perfect competition, with firms facing a perfectly elastic demand curve at the market price.
- How firms determine short-run profit maximization and loss minimization by producing where marginal revenue equals marginal cost and shutting down if average revenue is below average variable cost.
- How the industry reaches long-run equilibrium as new firms enter if profits exist and firms exit if losses exist, driving profits down to zero.
The document discusses four market structures: pure competition, pure monopoly, monopolistic competition, and oligopoly. It provides details on the characteristics, pricing, and profit maximization analysis of perfect competition and pure monopoly. An example is given to illustrate the cost structure and profit calculation of a perfectly competitive firm. Market equilibrium is determined by comparing individual firm supply and market demand. [/SUMMARY]
This document discusses various barriers to entry that allow monopolies to form and persist, including legal restrictions like patents, economies of scale, and control of essential resources. It provides examples of monopolies in different industries. The document also examines how a monopoly determines the profit-maximizing price and quantity to produce by equating marginal revenue and marginal cost, and outlines how this differs from perfect competition. Consumer surplus is lower under monopoly compared to perfect competition due to the deadweight loss.
This chapter discusses perfect competition and profit maximization in perfect competition. It contains the following key points:
1. Under perfect competition, there are many small firms and buyers/sellers, homogeneous products, free entry and exit, and perfect information. Firms are price takers and maximize profits by producing where MR=MC.
2. In the short run, firms will shut down if P<AVC or operate to minimize losses if ATC>P>AVC. In the long run, zero economic profits are achieved through free entry and exit of firms.
3. External changes like shifting demand curves or new technology can impact market equilibrium prices and quantities in the short and long run through adjustments to
This chapter discusses perfect competition and profit maximization in competitive markets. It contains the following key points:
1. Under perfect competition, there are many small firms and buyers/sellers, homogeneous products, free entry and exit, and perfect information. Firms are price takers and maximize profits by producing where marginal revenue equals marginal cost.
2. In the short run, firms will shut down if price falls below average variable cost or operate at a loss if price is between average variable and average total cost. In the long run, zero economic profits are achieved through free entry and exit of firms.
3. External changes like shifting demand curves or new technology can impact market equilibrium price and quantity in both the
Perfect competition requires:
- Numerous buyers and sellers who are price takers
- Identical products
- Free entry and exit from the market
- Complete information
Firms maximize profits by producing where marginal cost equals marginal revenue. In perfect competition, marginal revenue equals price for all firms. In the long run, perfect competition leads to an equilibrium with zero economic profits.
There are several ways for a firm to increase profits:
1. Increase output up to the point where marginal revenue equals marginal cost, which is the profit-maximizing level of output.
2. Reduce costs of production to lower the average cost curve and increase the profit margin.
3. Shift the demand curve outward through marketing, innovation, or other means to increase the profit-maximizing price and output.
This document discusses monopoly and monopoly power. It begins by reviewing perfect competition and then defines monopoly as a market with one seller and many buyers of a unique product where there are barriers to entry. A monopolist maximizes profits by producing where marginal revenue equals marginal cost. The document provides examples of how a monopolist determines output and price. It also discusses how a monopolist may respond to shifts in demand and the effects of taxes. The document notes that multi-plant firms will equalize marginal costs across plants. While true monopoly is rare, oligopolistic markets can exhibit monopoly power if firms have downward sloping demand curves. The Lerner Index is introduced as a way to measure monopoly power.
The document discusses long-run costs and output decisions for firms. It begins by examining three short-run scenarios: firms earning profits, firms operating at a loss but with positive operating profit, and firms shutting down due to losses exceeding operating profit. In the long run, firms earning profits will expand while loss-making firms will contract or exit. The document then analyzes long-run costs in the form of economies of scale (increasing returns), constant returns, and diseconomies of scale (decreasing returns). It concludes that in long-run competitive equilibrium, price will equal minimum long-run average cost and firms will operate at optimal scale, with profits driven to zero.
Price takers are firms that must accept the market price and have no control over price setting. Their output is small relative to the market for homogeneous goods like wheat, oil, or beef. Price searchers face a downward sloping demand curve and may be larger firms producing differentiated products like Nike or Coke. Most markets involve price searching firms. Perfect competition in price taker markets leads to efficient resource allocation and benefits consumers through low prices and new firm entry. Profits and losses communicate market signals, rewarding efficient firms and penalizing inefficient ones. This competitive process improves productivity and living standards over the long run.
The document discusses key concepts relating to perfect competition, including:
- Firms are price-takers and face perfectly elastic demand in competitive markets
- Profit maximization occurs where marginal revenue equals marginal cost
- In the short-run, a firm may earn profits, losses, or just cover costs
- In the long-run, if profits exist, entry by new firms will increase supply and drive prices down until profits are eliminated
The document describes the key characteristics and assumptions of perfect competition, including firms being price takers, products being homogeneous, and free entry and exit in the industry. It discusses how in the short run, firms will operate at a loss, normal profit, or supernormal profit depending on whether price is below, equal to, or above average total cost. In the long run, entry and exit of firms will drive price down to equal long run average cost, resulting in zero economic profit.
The document discusses perfect competition and perfectly competitive markets. It defines the key assumptions of perfect competition as firms being price takers, products being homogeneous, and free entry and exit in the industry. It explains that in the short run, competitive firms will operate at a loss, earn normal profits, or supernormal profits depending on whether price is below average cost, equal to average cost, or above average cost. In the long run, entry and exit of firms will drive prices down to equal minimum long run average cost, resulting in zero economic profits.
This chapter discusses profit maximization and competitive supply. It outlines the assumptions of perfect competition including price taking, product homogeneity, and free entry and exit. It explains that in the short run, firms maximize profits by producing where marginal revenue equals marginal cost. The chapter defines marginal revenue and marginal cost and shows how firms determine their profit-maximizing output level. It introduces the concepts of the competitive firm's short-run supply curve and the market supply curve in the short run. The chapter also discusses how firms and markets respond to changes in input prices or market conditions.
The document appears to be a company logo repeated many times over several pages. It includes the text "Company Logo" and the website "www.themegallery.com". The logo and website are printed without any other words or context.
Skybuffer SAM4U tool for SAP license adoptionTatiana Kojar
Manage and optimize your license adoption and consumption with SAM4U, an SAP free customer software asset management tool.
SAM4U, an SAP complimentary software asset management tool for customers, delivers a detailed and well-structured overview of license inventory and usage with a user-friendly interface. We offer a hosted, cost-effective, and performance-optimized SAM4U setup in the Skybuffer Cloud environment. You retain ownership of the system and data, while we manage the ABAP 7.58 infrastructure, ensuring fixed Total Cost of Ownership (TCO) and exceptional services through the SAP Fiori interface.
Introduction of Cybersecurity with OSS at Code Europe 2024Hiroshi SHIBATA
I develop the Ruby programming language, RubyGems, and Bundler, which are package managers for Ruby. Today, I will introduce how to enhance the security of your application using open-source software (OSS) examples from Ruby and RubyGems.
The first topic is CVE (Common Vulnerabilities and Exposures). I have published CVEs many times. But what exactly is a CVE? I'll provide a basic understanding of CVEs and explain how to detect and handle vulnerabilities in OSS.
Next, let's discuss package managers. Package managers play a critical role in the OSS ecosystem. I'll explain how to manage library dependencies in your application.
I'll share insights into how the Ruby and RubyGems core team works to keep our ecosystem safe. By the end of this talk, you'll have a better understanding of how to safeguard your code.
A Comprehensive Guide to DeFi Development Services in 2024Intelisync
DeFi represents a paradigm shift in the financial industry. Instead of relying on traditional, centralized institutions like banks, DeFi leverages blockchain technology to create a decentralized network of financial services. This means that financial transactions can occur directly between parties, without intermediaries, using smart contracts on platforms like Ethereum.
In 2024, we are witnessing an explosion of new DeFi projects and protocols, each pushing the boundaries of what’s possible in finance.
In summary, DeFi in 2024 is not just a trend; it’s a revolution that democratizes finance, enhances security and transparency, and fosters continuous innovation. As we proceed through this presentation, we'll explore the various components and services of DeFi in detail, shedding light on how they are transforming the financial landscape.
At Intelisync, we specialize in providing comprehensive DeFi development services tailored to meet the unique needs of our clients. From smart contract development to dApp creation and security audits, we ensure that your DeFi project is built with innovation, security, and scalability in mind. Trust Intelisync to guide you through the intricate landscape of decentralized finance and unlock the full potential of blockchain technology.
Ready to take your DeFi project to the next level? Partner with Intelisync for expert DeFi development services today!
Have you ever been confused by the myriad of choices offered by AWS for hosting a website or an API?
Lambda, Elastic Beanstalk, Lightsail, Amplify, S3 (and more!) can each host websites + APIs. But which one should we choose?
Which one is cheapest? Which one is fastest? Which one will scale to meet our needs?
Join me in this session as we dive into each AWS hosting service to determine which one is best for your scenario and explain why!
Ivanti’s Patch Tuesday breakdown goes beyond patching your applications and brings you the intelligence and guidance needed to prioritize where to focus your attention first. Catch early analysis on our Ivanti blog, then join industry expert Chris Goettl for the Patch Tuesday Webinar Event. There we’ll do a deep dive into each of the bulletins and give guidance on the risks associated with the newly-identified vulnerabilities.
Digital Marketing Trends in 2024 | Guide for Staying AheadWask
https://www.wask.co/ebooks/digital-marketing-trends-in-2024
Feeling lost in the digital marketing whirlwind of 2024? Technology is changing, consumer habits are evolving, and staying ahead of the curve feels like a never-ending pursuit. This e-book is your compass. Dive into actionable insights to handle the complexities of modern marketing. From hyper-personalization to the power of user-generated content, learn how to build long-term relationships with your audience and unlock the secrets to success in the ever-shifting digital landscape.
Salesforce Integration for Bonterra Impact Management (fka Social Solutions A...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on integration of Salesforce with Bonterra Impact Management.
Interested in deploying an integration with Salesforce for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Trusted Execution Environment for Decentralized Process MiningLucaBarbaro3
Presentation of the paper "Trusted Execution Environment for Decentralized Process Mining" given during the CAiSE 2024 Conference in Cyprus on June 7, 2024.
Skybuffer AI: Advanced Conversational and Generative AI Solution on SAP Busin...Tatiana Kojar
Skybuffer AI, built on the robust SAP Business Technology Platform (SAP BTP), is the latest and most advanced version of our AI development, reaffirming our commitment to delivering top-tier AI solutions. Skybuffer AI harnesses all the innovative capabilities of the SAP BTP in the AI domain, from Conversational AI to cutting-edge Generative AI and Retrieval-Augmented Generation (RAG). It also helps SAP customers safeguard their investments into SAP Conversational AI and ensure a seamless, one-click transition to SAP Business AI.
With Skybuffer AI, various AI models can be integrated into a single communication channel such as Microsoft Teams. This integration empowers business users with insights drawn from SAP backend systems, enterprise documents, and the expansive knowledge of Generative AI. And the best part of it is that it is all managed through our intuitive no-code Action Server interface, requiring no extensive coding knowledge and making the advanced AI accessible to more users.
Main news related to the CCS TSI 2023 (2023/1695)Jakub Marek
An English 🇬🇧 translation of a presentation to the speech I gave about the main changes brought by CCS TSI 2023 at the biggest Czech conference on Communications and signalling systems on Railways, which was held in Clarion Hotel Olomouc from 7th to 9th November 2023 (konferenceszt.cz). Attended by around 500 participants and 200 on-line followers.
The original Czech 🇨🇿 version of the presentation can be found here: https://www.slideshare.net/slideshow/hlavni-novinky-souvisejici-s-ccs-tsi-2023-2023-1695/269688092 .
The videorecording (in Czech) from the presentation is available here: https://youtu.be/WzjJWm4IyPk?si=SImb06tuXGb30BEH .
Programming Foundation Models with DSPy - Meetup SlidesZilliz
Prompting language models is hard, while programming language models is easy. In this talk, I will discuss the state-of-the-art framework DSPy for programming foundation models with its powerful optimizers and runtime constraint system.
Fueling AI with Great Data with Airbyte WebinarZilliz
This talk will focus on how to collect data from a variety of sources, leveraging this data for RAG and other GenAI use cases, and finally charting your course to productionalization.
Taking AI to the Next Level in Manufacturing.pdfssuserfac0301
Read Taking AI to the Next Level in Manufacturing to gain insights on AI adoption in the manufacturing industry, such as:
1. How quickly AI is being implemented in manufacturing.
2. Which barriers stand in the way of AI adoption.
3. How data quality and governance form the backbone of AI.
4. Organizational processes and structures that may inhibit effective AI adoption.
6. Ideas and approaches to help build your organization's AI strategy.