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曼昆经济学原理教案2-全英文Chap14
Firms in Competitive Markets Chapter 14 The Meaning of Competition 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 perfectly 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 price 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 Competitive 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. 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 want 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... Profit Maximization for the Competitive Firm Profit maximization occurs at the quantity where marginal revenue equals marginal cost. Profit Maximization for the Competitive Firm The Marginal-Cost Curve and the Firm’s Supply Decision... The Firm’s Short-R
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