Ch12 S11 - Introduction to Microeconomics AP/ECON1000 3.0 Section A Summer 2011(S1 MW 11:30 2:30 Professor Art Noordeh PhD Web site

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Introduction to Microeconomics AP/ECON1000 3.0 Section A Summer 2011 (S1) MW; 11:30 – 2:30 Professor: Art Noordeh, PhD Web site: www.noordeh.pageout.net
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Teaching Assistant 1. Emily Penner Office: 1081 VH Hours: MW; 10:30 – 11:30 and 2:30 – 4:30 Email: [email protected] 1. Ahasan Kabir Office: 1089 VH Hours: MW; 2:30 – 5:30 Email: [email protected]
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Course Evaluation M - Midterm (40%): Wednesday May 25th – in class Final Exam (F)
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FINAL EXAM Wed. June 15, 2011 9 am CLH – C: A – G CLH – E: H – N CLH – F: O - Z
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Reading/Homework for the week of Reading: Text – Chs. 10 - 15 Practice Exercises: Practice Exercises: All review Quizzes & All review Quizzes & Odd-numbered problems Odd-numbered problems Additional home work (recommended) : Study Guide: Key Concepts & odd- Key Concepts & odd- numbered Multiple Choice questions numbered Multiple Choice questions Myeconlab: Myeconlab: practice questions and practice questions and sample quizzes. sample quizzes.
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Chapter 12 PERFECT COMPETITION
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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
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Competition Characteristics: Many firms Identical products Free entry and Exit Established firms have no advantages over new ones Perfect Information.
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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 .
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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.
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Competition
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Competition
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Competition
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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).
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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:
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This note was uploaded on 06/09/2011 for the course ECON 1000 taught by Professor Paschakis during the Spring '08 term at York University.

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Ch12 S11 - Introduction to Microeconomics AP/ECON1000 3.0 Section A Summer 2011(S1 MW 11:30 2:30 Professor Art Noordeh PhD Web site

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