曼昆经济学原理Chapter14.ppt

Firms petitive Markets
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What is petitive Market?
(Perfectly) Competitive market
1) Market with many buyers and sellers
2) Trading the identical (same) products
(Consequently) Each buyer and seller is a price taker
No single buyer or seller can influence the price
3) Firms can freely enter or exit the market
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
What is petitive Market?
The goal of petitive firm
Maximize profit
Total revenue minus total cost
Total revenue = price times quantity
= P ˣ Q
Proportional to the amount of output (P is fixed: price taker)
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
What is petitive Market?
Average revenue
Total revenue divided by the quantity sold
Marginal revenue
Change in total revenue from an additional unit sold
petitive firms (as price taker)
Average revenue = P
Marginal revenue = P
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Table 1
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain