14 Perfect Competition

14 Perfect Competition - Perfect Competition 2/17/11 11:59...

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Perfect Competition 2/17/11 11:59 PM Today’s Interesting Questions: What does demand have to do with anything? We know how to find the output where cost is minimized, but what is the output where profit is maximized When does a firm shut down in the short run or exist an industry in the long run? Does the supply curve look the same in the short run and the long run? Introduction Every business must decide how much to produce, what price to change, how many workers to hire, etc. o How much output and input needed o Long run- size of factory and company What factors should affect decisions? o Costs o Demand for product o Competition it faces Begin by studying the behavior of firms in perfectly competitive markets We don’t see ads for some product such as copper, crude oil because of the types of markets they are in Market structures also affect how well companies do and how much profit they can make Characteristics of Perfect Competition Number of Firms: many
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This note was uploaded on 02/17/2011 for the course ECON 011 taught by Professor Yezer during the Fall '07 term at GWU.

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14 Perfect Competition - Perfect Competition 2/17/11 11:59...

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