Perfect Market Competition.pptx
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This document provides an overview of perfect competition markets. It defines key terms like market and discusses the classification of different market forms. The main features of a perfect competition market are described as having many small producers and sellers of homogeneous products, with no single seller influencing price and all being price takers. Firms have perfect knowledge and no transport, selling, or advertising costs. The market price is determined by the intersection of industry demand and supply curves. Individual firms are price takers and maximize profits where marginal revenue equals marginal cost. In the short run, firms can experience abnormal profits, no profits/losses, or losses, and in long run equilibrium all firms earn only normal profits.
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Perfect Competitive Market
This document defines and explains the characteristics of a perfect competition market. Key points include:
- A perfect competition market is one where many small producers sell identical products, meaning buyers have many alternatives and no single seller can influence the market price.
- Main features include homogeneous products, many buyers and sellers, perfect information and mobility of factors of production. Agricultural markets are often used as examples.
- In the short run, firms aim to maximize profits by producing where marginal revenue equals marginal cost. In the long run, firms will exit if earning losses or normal profits and entry will occur if profits are above normal.
- The market equilibrium price is determined by the intersection of total industry demand and supply. Individual
perfect compt.pptx
The document defines market structures and describes the characteristics of a perfectly competitive market. It notes that a perfectly competitive market has many small firms and buyers, homogeneous products, no barriers to entry/exit, perfect information and price-taking behavior. Firms in this market aim to maximize profits by producing where marginal revenue equals marginal cost, which occurs at the market price since demand is perfectly elastic.
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1monopolistic competition
Here are the steps to solve this problem:
1) Take the derivative of total cost (TC') = 400 - 40Q + 3Q^2
2) Set TC' equal to marginal revenue (MR) and solve for Q:
TC' = MR
400 - 40Q + 3Q^2 = 309.75 - Q
3Q^2 - 39Q + 91.25 = 0
3) Solve the quadratic formula to find the optimal quantity:
Q* = 13
4) Plug Q* back into the demand equation to find price:
P* = 309.75 - 13 = 296.75
5) Calculate total cost at Q* and subtract from total revenue to find profit:
Perfect competition iimm
This document discusses market structures, specifically perfect competition. It defines key features of perfect competition including a large number of buyers and sellers, homogeneous products, free entry and exit, and perfect information. Under perfect competition, firms are price takers and maximize profits by producing where marginal revenue equals marginal cost. In the long run, no firms earn supernormal profits and all firms earn only normal profits as entry and exit leads to equilibrium.
Perfect competition
Perfect competition requires: firms are price takers, many sellers/buyers, free entry/exit, identical products, complete information. In short-run, individual firms maximize profits where marginal cost (MC) equals marginal revenue (MR). Market supply is the sum of individual firm MC curves. In long-run, zero economic profits are achieved as new entry drives prices down until MC equals average costs.
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This document defines and explains the characteristics of a perfect competition market. Key points include:
- A perfect competition market is one where many small producers sell identical products, meaning buyers have many alternatives and no single seller can influence the market price.
- Main features include homogeneous products, many buyers and sellers, perfect information and mobility of factors of production. Agricultural markets are often used as examples.
- In the short run, firms aim to maximize profits by producing where marginal revenue equals marginal cost. In the long run, firms will exit if earning losses or normal profits and entry will occur if profits are above normal.
- The market equilibrium price is determined by the intersection of total industry demand and supply. Individual
perfect compt.pptx
The document defines market structures and describes the characteristics of a perfectly competitive market. It notes that a perfectly competitive market has many small firms and buyers, homogeneous products, no barriers to entry/exit, perfect information and price-taking behavior. Firms in this market aim to maximize profits by producing where marginal revenue equals marginal cost, which occurs at the market price since demand is perfectly elastic.
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FellowBuddy.com is an innovative platform that brings students together to share notes, exam papers, study guides, project reports and presentation for upcoming exams.
We connect Students who have an understanding of course material with Students who need help.
Benefits:-
# Students can catch up on notes they missed because of an absence.
# Underachievers can find peer developed notes that break down lecture and study material in a way that they can understand
# Students can earn better grades, save time and study effectively
Our Vision & Mission – Simplifying Students Life
Our Belief – “The great breakthrough in your life comes when you realize it, that you can learn anything you need to learn; to accomplish any goal that you have set for yourself. This means there are no limits on what you can be, have or do.”
Like Us - https://www.facebook.com/FellowBuddycom
1monopolistic competition
Here are the steps to solve this problem:
1) Take the derivative of total cost (TC') = 400 - 40Q + 3Q^2
2) Set TC' equal to marginal revenue (MR) and solve for Q:
TC' = MR
400 - 40Q + 3Q^2 = 309.75 - Q
3Q^2 - 39Q + 91.25 = 0
3) Solve the quadratic formula to find the optimal quantity:
Q* = 13
4) Plug Q* back into the demand equation to find price:
P* = 309.75 - 13 = 296.75
5) Calculate total cost at Q* and subtract from total revenue to find profit:
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This document discusses market structures, specifically perfect competition. It defines key features of perfect competition including a large number of buyers and sellers, homogeneous products, free entry and exit, and perfect information. Under perfect competition, firms are price takers and maximize profits by producing where marginal revenue equals marginal cost. In the long run, no firms earn supernormal profits and all firms earn only normal profits as entry and exit leads to equilibrium.
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Perfect competition requires: firms are price takers, many sellers/buyers, free entry/exit, identical products, complete information. In short-run, individual firms maximize profits where marginal cost (MC) equals marginal revenue (MR). Market supply is the sum of individual firm MC curves. In long-run, zero economic profits are achieved as new entry drives prices down until MC equals average costs.
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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.
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The document discusses perfect competition in three sentences:
Perfect competition requires a large number of small firms, standardized products, and free entry and exit into the market. Under perfect competition, firms are price takers and maximize profits by producing where marginal revenue equals marginal cost. The market equilibrium price is determined by the intersection of total market demand and supply, with competitive firms earning profits or losses based on the relationship between price and their average total costs.
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The document provides an overview of market structures including perfect competition, monopoly, monopolistic competition, and oligopoly. It defines key concepts such as market equilibrium, revenue curves, and profit maximization conditions. For each market structure, it discusses features, pricing determination, and equilibrium in both the short-run and long-run. It also provides examples of Cournot and Bertrand models of oligopoly to illustrate how firms may consider competitors' actions when setting prices and output.
Perfect Competition
Students should be able to:
Understand the assumptions of perfect competition and be able to explain the behaviour of firms in this market structure.
Understand the significance of firms as price-takers in perfectly competitive markets. An understanding of the meaning of shut-down point is required. The impact of entry into and exit from the industry should be considered.
Economics Perfect Market Competition
Perfect Market Competition, Features, Behaviour & Implications of Revenue under perfect competition, Difference between Perfect competition , Monopolistic competition and Monopoly
Market structure
The market is made up of buyers and sellers who conduct exchange transactions. Markets can be classified based on area, the nature of transactions, volume, time period, and level of competition. Under perfect competition, there are many small firms and homogeneous products. Individual firms are price takers and maximize profits where marginal revenue equals marginal cost. Monopolies have single firms and differentiated products, allowing them to be price makers that also set output at the point where marginal revenue equals marginal cost. Oligopolies feature a few interdependent firms, and pricing may involve price leadership or tacit collusion to coordinate prices.
Perfect competition summary
This document summarizes the key assumptions and characteristics of a perfectly competitive market. It outlines that in a perfectly competitive market there are many small firms, homogeneous products, free entry and exit of businesses, and complete information. It provides examples of markets like street markets that more closely resemble perfect competition than others like bookmakers. The document then examines the market interactions under perfect competition, including the determination of market price and quantity from the intersection of supply and demand. It explores how individual firms are price takers and earn only normal profits in the long run. Finally, it discusses how perfect competition leads to allocative, productive, and dynamic efficiency, though dynamic efficiency may be limited without innovation incentives.
Imperfect competition.pptx
Imperfect competition is an economic concept used to describe marketplace conditions that render a market less than perfectly competitive, creating market inefficiencies that result in losses of economic value.
In the real world, markets are nearly always in a condition of imperfect competition to some extent. However, the term is typically only used to describe markets where the level of competition among sellers is substantially below ideal conditions.A situation of imperfect competition exists whenever one of the fundamental characteristics of perfect competition is missing. When there is perfect competition in a market, prices are controlled primarily by the ordinary economic factors of supply and demand.
Notably, the stock market may be viewed as a continually imperfect market because not all investors have ready access to the same level of information regarding potential investments.
Imperfect competition commonly exists when a market structure is in the form of monopolies, duopolies, oligopolies, or monopsony (very rare)
Market structures that effectively render competition imperfect are most often characterized by a lack of competitive suppliers. Imperfect competition often exists as a result of extremely high barriers to entry for new suppliers. For example, the airline industry has high barriers to entry due to the extremely high cost of aircraft.
The most extreme condition of imperfect competition exists when the market for a particular good or service is a monopoly, one in which there is a sole supplier. A supplier that has a monopoly on the provision of a good or service essentially has complete control over prices.
Because it has no competition from other suppliers, the sole supplier can essentially set the price of its goods or services at any level it desires. Monopolies often charge prices that provide them with significantly higher profit margins than most companies operate with.
A duopoly is a market structure in which there are only two suppliers. Although duopolies are somewhat more competitive than monopolies, the level of competition is still far from perfect, as the two suppliers still have significant control of marketplace prices.
An example of a duopoly exists in the United Kingdom’s detergent market, where Procter & Gamble (NYSE: PG) and Unilever (NYSE: UL) are virtually the only suppliers. The two suppliers in a duopoly often collude in price setting.
Oligopolies are much more common than either monopolies or duopolies. In an oligopoly, there are several – but a small, limited number – of suppliers. The market for cell phone service in the United States is an example of an oligopoly, as it is essentially controlled by just a handful of suppliers. The small number of suppliers, which limits buying choices for consumers, provides the suppliers with substantial, although not complete, control over pricing.
A rare form of imperfect competition is monopsony. A monopsony is a single buyer, rather than any supplier.
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1. The document discusses market structure and perfect competition. It defines perfect competition as a market with many small producers and consumers, homogeneous products, free entry and exit, and perfect information.
2. Under perfect competition, firms are price takers and maximize profits by producing where price equals marginal cost (P=MC). The market equilibrium occurs where the industry supply curve intersects with the demand curve.
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1) The document discusses different market structures including perfect competition and monopoly.
2) Under perfect competition, firms are price takers and can only earn normal profits in the long run. A monopoly has market power to set prices and can earn supernormal profits.
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- Under perfect competition there are many small firms, homogeneous products, free entry and exit, and no single firm can influence price. Equilibrium occurs where marginal cost equals price.
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Perfect competition
The document discusses the concept of perfect competition. It defines perfect competition as a market with many small firms, homogeneous products, free entry and exit, and perfect information. Under perfect competition in the short run, firms are price takers and will produce at the price that maximizes their profits where marginal revenue equals marginal cost. In the long run, perfectly competitive firms will earn only normal profits as entry and exit will cause prices to adjust until average costs are equal to prices.
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Perfect competition requires:
- Numerous buyers and sellers who are price takers
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- 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.
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Perfect competition and monopoly represent opposite extremes of market structure. Under perfect competition, many small firms produce identical goods, with no barriers to entry or exit. Firms are price takers. In monopoly, there is a single seller of a unique good, with barriers preventing other firms from entering the market. The monopolist is a price maker that faces a downward sloping demand curve. In both short-run equilibrium, marginal revenue equals marginal cost, but under perfect competition price equals marginal cost, while under monopoly price exceeds marginal cost.
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The document discusses perfect competition in three sentences:
Perfect competition requires a large number of small firms, standardized products, and free entry and exit into the market. Under perfect competition, firms are price takers and maximize profits by producing where marginal revenue equals marginal cost. The market equilibrium price is determined by the intersection of total market demand and supply, with competitive firms earning profits or losses based on the relationship between price and their average total costs.
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The document provides an overview of market structures including perfect competition, monopoly, monopolistic competition, and oligopoly. It defines key concepts such as market equilibrium, revenue curves, and profit maximization conditions. For each market structure, it discusses features, pricing determination, and equilibrium in both the short-run and long-run. It also provides examples of Cournot and Bertrand models of oligopoly to illustrate how firms may consider competitors' actions when setting prices and output.
Perfect Competition
Students should be able to:
Understand the assumptions of perfect competition and be able to explain the behaviour of firms in this market structure.
Understand the significance of firms as price-takers in perfectly competitive markets. An understanding of the meaning of shut-down point is required. The impact of entry into and exit from the industry should be considered.
Economics Perfect Market Competition
Perfect Market Competition, Features, Behaviour & Implications of Revenue under perfect competition, Difference between Perfect competition , Monopolistic competition and Monopoly
Market structure
The market is made up of buyers and sellers who conduct exchange transactions. Markets can be classified based on area, the nature of transactions, volume, time period, and level of competition. Under perfect competition, there are many small firms and homogeneous products. Individual firms are price takers and maximize profits where marginal revenue equals marginal cost. Monopolies have single firms and differentiated products, allowing them to be price makers that also set output at the point where marginal revenue equals marginal cost. Oligopolies feature a few interdependent firms, and pricing may involve price leadership or tacit collusion to coordinate prices.
Perfect competition summary
This document summarizes the key assumptions and characteristics of a perfectly competitive market. It outlines that in a perfectly competitive market there are many small firms, homogeneous products, free entry and exit of businesses, and complete information. It provides examples of markets like street markets that more closely resemble perfect competition than others like bookmakers. The document then examines the market interactions under perfect competition, including the determination of market price and quantity from the intersection of supply and demand. It explores how individual firms are price takers and earn only normal profits in the long run. Finally, it discusses how perfect competition leads to allocative, productive, and dynamic efficiency, though dynamic efficiency may be limited without innovation incentives.
Imperfect competition.pptx
Imperfect competition is an economic concept used to describe marketplace conditions that render a market less than perfectly competitive, creating market inefficiencies that result in losses of economic value.
In the real world, markets are nearly always in a condition of imperfect competition to some extent. However, the term is typically only used to describe markets where the level of competition among sellers is substantially below ideal conditions.A situation of imperfect competition exists whenever one of the fundamental characteristics of perfect competition is missing. When there is perfect competition in a market, prices are controlled primarily by the ordinary economic factors of supply and demand.
Notably, the stock market may be viewed as a continually imperfect market because not all investors have ready access to the same level of information regarding potential investments.
Imperfect competition commonly exists when a market structure is in the form of monopolies, duopolies, oligopolies, or monopsony (very rare)
Market structures that effectively render competition imperfect are most often characterized by a lack of competitive suppliers. Imperfect competition often exists as a result of extremely high barriers to entry for new suppliers. For example, the airline industry has high barriers to entry due to the extremely high cost of aircraft.
The most extreme condition of imperfect competition exists when the market for a particular good or service is a monopoly, one in which there is a sole supplier. A supplier that has a monopoly on the provision of a good or service essentially has complete control over prices.
Because it has no competition from other suppliers, the sole supplier can essentially set the price of its goods or services at any level it desires. Monopolies often charge prices that provide them with significantly higher profit margins than most companies operate with.
A duopoly is a market structure in which there are only two suppliers. Although duopolies are somewhat more competitive than monopolies, the level of competition is still far from perfect, as the two suppliers still have significant control of marketplace prices.
An example of a duopoly exists in the United Kingdom’s detergent market, where Procter & Gamble (NYSE: PG) and Unilever (NYSE: UL) are virtually the only suppliers. The two suppliers in a duopoly often collude in price setting.
Oligopolies are much more common than either monopolies or duopolies. In an oligopoly, there are several – but a small, limited number – of suppliers. The market for cell phone service in the United States is an example of an oligopoly, as it is essentially controlled by just a handful of suppliers. The small number of suppliers, which limits buying choices for consumers, provides the suppliers with substantial, although not complete, control over pricing.
A rare form of imperfect competition is monopsony. A monopsony is a single buyer, rather than any supplier.
Monopolistic competition basic things
Monopolistic competition describes a market structure with many small businesses that sell differentiated but similar products. While firms compete on price, they also engage in non-price competition through product differentiation, branding, and advertising. In the short run, firms maximize profits by producing where marginal revenue equals marginal cost. In the long run, free entry and exit causes average costs to equal prices as firms earn zero economic profit.
Perfect Competition
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.
Market Perfect Competition_MBA_Parakramesh Jaroli
This document provides an overview of different market structures, with a focus on perfect competition. It defines key concepts related to revenue, costs, and profit maximization for firms in competitive markets. Perfect competition is characterized by many small firms, homogeneous products, free entry and exit, and perfect information. Under perfect competition, firms are price takers and marginal revenue equals price. Equilibrium occurs where marginal cost equals marginal revenue. The document also discusses long-run equilibrium and how perfect competition leads to allocative efficiency.
Market Structures
Class: Economics20: Consumer Economics
Sub Topic:
- Pure Competition
- Assumption of Profit Maximization
- Comparison of total cost and total revenue
- Comparison of marginal revenue and marginal cost
Pricing & Output Decision.ppt
1. The document discusses market structure and perfect competition. It defines perfect competition as a market with many small producers and consumers, homogeneous products, free entry and exit, and perfect information.
2. Under perfect competition, firms are price takers and maximize profits by producing where price equals marginal cost (P=MC). The market equilibrium occurs where the industry supply curve intersects with the demand curve.
3. The document also discusses the conditions under which firms will earn profits, normal profits, losses, or should shut down based on the relationship between price, average total cost and average variable cost.
Profitmax
1) The document discusses different market structures including perfect competition and monopoly.
2) Under perfect competition, firms are price takers and can only earn normal profits in the long run. A monopoly has market power to set prices and can earn supernormal profits.
3) A monopoly will choose to produce a lower quantity at a higher price than under perfect competition, resulting in lower output but higher profits for the monopoly.
Market structure
- A market is defined as the interaction between buyers and sellers of a product where the price tends to be uniform. Market structure depends on the number of firms, nature of products, barriers to entry, and degree of price control.
- Under perfect competition there are many small firms, homogeneous products, free entry and exit, and no single firm can influence price. Equilibrium occurs where marginal cost equals price.
- Monopoly is characterized by a single firm, no close substitutes, and high barriers to entry. The monopolist's equilibrium occurs where marginal revenue equals marginal cost and price is above marginal cost.
Monopolistic Competition Micro Economics ECO101
This document discusses monopolistic competition, which has characteristics of both monopoly and perfect competition. Under monopolistic competition, there are many firms selling differentiated products, free entry and exit into the market, and firms make profits in the short run but not the long run as new entrants drive prices down to average total cost. In the long run, monopolistically competitive firms produce at a quantity less than the efficient scale and have excess capacity. They also charge prices above marginal cost, earning a markup. Firms advertise to attract customers to their differentiated products and maintain brand names to signal quality to consumers.
Perfect competition
The document discusses the concept of perfect competition. It defines perfect competition as a market with many small firms, homogeneous products, free entry and exit, and perfect information. Under perfect competition in the short run, firms are price takers and will produce at the price that maximizes their profits where marginal revenue equals marginal cost. In the long run, perfectly competitive firms will earn only normal profits as entry and exit will cause prices to adjust until average costs are equal to prices.
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Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
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An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
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- 2. MEANING OF MARKET • Goods and service • Buyers and sellers • A place or region • Given price
- 3. Perfect Competition Market Classification ofMarket Markets Form PerfectCompetition ImperfectCompetition MonopolisticCompetition Oligopoly Duopoly Monopoly
- 4. Meaning of Perfect CompetitionMarket “AMarket situation in whichalargenumberof producers or sellers producing andselling homogeneousproduct.”
- 5. Main features of Perfect CompetitionMarket • Each sellers sell a small portion total • Single sellers has no influence on market • Sellers are price taker • Identical product • Same price and cost • There is no government or other control Large no. of buyers and sellers Homogeneo us product Free entry and exit
- 6. Main features of Perfect CompetitionMarket • Perfect knowledge about the prevailing price. Perfect knowledge about market • Large no. of firm, so no transport or selling cost • Homogeneous product, so no advt. needed Absents of selling cost and Advt. cost • Price is determined in the industry . A single price of product Example: Agricultural products
- 7. Meaning of Perfect CompetitionMarket Nature of demand andAR, MRCurve of a firm Output Price TR AR MR 1 1 0 2 1 0 3 1 0 4 1 0 5 1 0 6 1 0 7 1 0 8 1 0 Price Output Price=AR=MR Demand andAR,MR Curveof a firm Out put Price TR AR MR 1 10 10 10 10 2 10 20 10 10 3 10 30 10 10 4 10 40 10 10 5 10 50 10 10 6 10 60 10 10 7 10 70 10 10 8 10 80 10 10
- 8. Meaning of Perfect CompetitionMarket Price determination in theindustry Price Output DemandCurve Supply Curve Excess supply Excess Demand
- 9. Meaning of Perfect CompetitionMarket Price determination in theindustry Price Price=AR=MR Firm( is a PriceTaker) Price Industry DemandCurve Supply Curve Output Output First Condition for maximization of profit > MR= MC Second Condition for maximization of profit > MC curve cut MR curve from bellow
- 10. Meaning of Perfect CompetitionMarket Price determination in theindustry Price Output Price=AR=MR Firm( is a PriceTaker) Price Output Demand Curve Industry Supply Curve What is level of output of a firm ? First Condition for maximization of profit is MR= MC Second Condition for maximization of profit is MC curve cut MR curve from bellow
- 11. Meaning of Perfect CompetitionMarket Thefirms equilibrium(Out putdetermination) Price Output Price=AR=MR Firm( is a PriceTaker) Price Output Industry DemandCurve Supply Curve MC O M MC=MR E E0 First Condition for maximization of profit is MR= MC Second Condition for maximization of profit is MC curve cut MR curve from bellow
- 12. Meaning of Perfect CompetitionMarket Short run equilibrium of a firm with abnormalprofit Price Output Price=AR=MR FirmwithProfit MC O M MC=MR Profit E AC
- 13. Meaning of Perfect CompetitionMarket Short run equilibrium of a firm with No profit No Losses Price Output Price=AR=MR FirmwithProfit MC O M MC=MR E AC
- 14. Meaning of Perfect CompetitionMarket Short run equilibrium of a firm withLosses Price Output Price=AR=MR FirmwithProfit MC O M Losses E MC=MR AC
- 15. Meaning of Perfect CompetitionMarket Long run equilibrium of a firm with NormalProfit Price Output Price=AR=MR FirmwithProfit LMC O M MC=MR E LAC