Perfect Competition
Discover the fundamentals of Perfect Competition, including how firms make output decisions, determine profits and losses, and analyze short- and long-run outcomes leading to efficiency in perfectly competitive markets.
Introduction to Perfect Competition
Perfect Competition and Why It Matters
Key Concepts and Summary
How Perfectly Competitive Firms Make Output Decisions
Determining the Highest Profit by Comparing Total Revenue and Total Cost
Comparing Marginal Revenue and Marginal Costs
Profits and Losses With the Average Cost Curve
The Shutdown Point
Short-Run Outcomes For Perfectly Competitive Firms
Marginal Cost and the Firm’s Supply Curve
Key Concepts and Summary
Entry and Exit Decisions in the Long Run
How Entry and Exit Lead to Zero Profits in the Long Run
The Long-Run Adjustment and Industry Types
Key Concepts and Summary
Efficiency in Perfectly Competitive Markets
Key Concepts and Summary