Firm Supply Demand Curve Facing Competitive Firm Supply
- Slides: 25
Firm Supply Demand Curve Facing Competitive Firm Supply Decision of a Competitive Firm Producer’s Surplus and Profits Long-Run
The Demand Curve Facing a Competitive Firm
Supply Decision of a Competitive Firm Problem of a competitive firm:
Revenues, Costs, and Profits
Maximum Profits
Optimal Quantity Supplied Firm maximizes: Necessary condition for optimal choice:
An Example Short-run cost function: Marginal cost function:
An Example Average variable costs: Average costs:
An Example Profit maximization: Necessary condition:
An Example
An Example: Profits
Producer’s Surplus Producer’s surplus=Area below price above supply curve Alternatively: below supply curve where area below supply curve (MC):
An Example: Producer’s Surplus
An Example: Producer’s Surplus
Producer’s Surplus and Profits Producer’s surplus: Profits:
An Example: Producer’s Surplus and Profits
An Example Output: Profits:
An Example Profits: Producer’s surplus:
One Exception: or ?
A Second Exception: Shutdown! Profits if firm produces: Profits if firm does not produce: Producing is better if:
A Second Exception: Shutdown! Producing is better if: Rearrange. Produce only if:
Shutdown
The Firm’s Supply Curve
Long and Short Run Supply in Consultant Firm Example
Shutdown in the Short-Run and in the Long-Run In the short-run, the shutdown condition is: In the long-run, the shutdown condition is:
- The demand curve facing a competitive firm
- What is short run equilibrium
- Short run supply curve for a perfectly competitive firm
- Minimum point of average cost curve
- Pure competition examples
- The labor demand curve of a purely competitive seller
- Perfectly competitive short run supply curve
- Equation para sa demand function
- Airline supply and demand curve
- Supply and demand graph examples
- Change in supply and change in quantity supplied
- Demand supply
- Module 5 supply and demand introduction and demand
- Which market is the least competitive
- Competitive antagonist
- Slow cycle market
- Matching supply and demand in supply chain
- Perfectly competitive firm profit maximization
- Firm resources and sustained competitive advantage barney
- A purely competitive seller is
- Competitive intelligence law firm
- Dominant firm with a competitive fringe
- Profit maximization and competitive supply
- Competitive supply
- Competitive supply
- Profit maximization and competitive supply