Ch11-_F08 - Principles of Microeconomics AS/ECON1000 3.0...

Info iconThis preview shows pages 1–16. Sign up to view the full content.

View Full Document Right Arrow Icon
Principles of Microeconomics AS/ECON1000 3.0 Section A– Fall 08 Professor: Art Noordeh, PhD Web site: www.noordeh.pageout.net
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Teaching Assistants Room 1098 VH Jenny Fang, fyj@yorku.ca T, R 11 – 2 pm Garry Sran, gsran@yorku.ca T, R 2 – 4 pm PJ Chuang, pjchuang@econ.yorku.ca M, W 1:30 – 4:30 pm
Background image of page 2
Course Evaluation Midterm Exam #2 (25%): T. Nov.11, in class Assignment (30%): Due T. Dec. 2, 08 @11:45 pm Final Exam (20%): T. Dec. 2, in class (Cumulative)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Other Important Dates Nov. 7, 08: Last date to drop the course without receiving a grade Dec. 2, 08: Last day of Classes
Background image of page 4
Reading/Homework for Reading: Text – Chs. 10 & 11 Practice Exercises: Practice Exercises: Study Guide: Chs. 10 & 11 Aplia: Aplia: Weeks 8 & 9: Related Practice questions/problems
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 11 PERFECT COMPETITION
Background image of page 6
Objectives Define perfect competition perfect competition Price and output determination in perfect competition Shut down Point Enter and Exit Effects of a change in demand and of a technological advance Perfect competition and efficiency
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Competition Characteristics: Many firms Identical products Free entry and Exit Established firms have no advantages over new ones Perfect Information.
Background image of page 8
Competition Each firm is A price taker. That is a firm that cannot influence the price of a good or service. Each firm’s output is a perfect substitute for the output of the other firms, so the demand for each firm’s output is perfectly elastic .
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Competition Economic Profit and Revenue (Review) The goal of each firm is to maximize economic profit , which equals total revenue minus total cost . Total cost is the opportunity cost of production, which includes normal profit . A firm’s total revenue equals price, P , multiplied by quantity sold, Q , or P × Q . A firm’s marginal revenue is the change in total revenue that results from a one-unit increase in the quantity sold.
Background image of page 10
Competition
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Competition
Background image of page 12
Competition
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Firm’s Decisions in Perfect Competition A perfectly competitive firm faces two constraints: A market constraint summarized by the market price and the firm’s revenue curves A technology constraint summarized by firm’s product curves and cost curves (like those in Chapter 10).
Background image of page 14
Competition The perfectly competitive firm makes two decisions in the short run: Whether to produce or to shut down. If the decision is to produce, what quantity to produce. A firm’s long-run decisions are:
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 16
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/04/2009 for the course ECON 1000 taught by Professor Paschakis during the Fall '08 term at York University.

Page1 / 59

Ch11-_F08 - Principles of Microeconomics AS/ECON1000 3.0...

This preview shows document pages 1 - 16. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online