中密苏里州立大学：《经济学原理——曼昆经济学原理》课程PPT教学课件（英文版）Chapter 14 Firms in Competitive Markets

Firms in Competitive 重自最 Markets Chapter 14 Copyright C 2001 by Harcourt, Inc All rights reserved. Requests for permission to make copies of any part of t work should be mailed to Permissions Department, Harcourt College Publishers 6277 Sea Harbor Drive. Orlando Florida 32887-6777

Firms in Competitive Markets Chapter 14 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777

The Meaning of competition a perfectly competitive market has the following characteristics o There are many buyers and sellers in the market o The goods offered by the various selers are a rgely the same o Firms can freely enter or exit the market H arc Inc items and derived items copyright o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. The Meaning of Competition uA perfectly competitive market has the following characteristics: u There are many buyers and sellers in the market. u The goods offered by the various sellers are largely the same. u 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. o Each buyer and seller takes the market price as given. H arc Inc items and derived items copyright o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. The Meaning of Competition uAs a result of its characteristics, the perfectly competitive market has the following outcomes: uThe actions of any single buyer or seller in the market have a negligible impact on the market price. uEach 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. H arc Inc items and derived items copyright C 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 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=(PX Q Harcourt, Inc. items and derived items copyright o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 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. H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 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 H arc Inc items and derived items copyright o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 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 n perfect competition, average revenue equals the price of the good. Total revenue Average revenue Quantity (Price x Quantity) Quantity Price H arc Inc items and derived items copyright o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm In perfect competition, average revenue equals the price of the good. Average revenue = Total revenue Quantity = (Price Quantity) Quantity = Price 

Revenue of a competitive Firm Marginal revenue is the change in total revenue from an additional unit sold MR=△TR△Q H arc Inc items and derived items copyright C 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 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. H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc

Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Revenue of a Competitive Firm For competitive firms, marginal revenue equals the price of the good