TAILIEUCHUNG - Lecture Business economics - Lecture 9: Firms in competitive markets

In this chapter we examine the behavior of competitive firms, such as your local gas station. After completing this chapter, students will be able to learn what characteristics make a market competitive, examine how competitive firms decide how much output to produce, examine how competitive firms decide when to shut down production temporarily,. | Review of previous lecture Average total cost is total cost divided by the quantity of output. Marginal cost is the amount by which total cost would rise if output were increased by one unit. The marginal cost always rises with the quantity of output. Average cost first falls as output increases and then rises. The average-total-cost curve is U-shaped. The marginal-cost curve always crosses the average-total-cost curve at the minimum of ATC. A firm’s costs often depend on the time horizon being considered. In particular, many costs are fixed in the short run but variable in the long run. Lecture 9 Firms in Competitive Markets Instructor: Abbas Course code: ECO 400 Lecture Outline What Is a Competitive Market? The Revenue of a Competitive Firm Profit Maximization The Supply Curve in a Competitive Market Why the Long Run Supply Curve Might Slope Upward What Is A Competitive Market? A perfectly competitive market characteristics are: There are many buyers and sellers in .

• Kinh tế học
• Business economics
• Lecture Business economics
• Business applications of economics
• Open economy
• Competitive markets
• Economic Models
• Principles of economics
• Economics of agriculture
• Monopolistic competition
• Macroeconomic policy
• Supply curve
• Elasticity of demand
• Consumer choice
• Competitive firms
• Imperfect competition
• Gross domestic product
• Financial intermediaries
• Productivity growth
• Natural rate of unemployment
• Labor force
• Money supply