This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Today’s Agenda • Shortrun supply and the shutdown point • Long run industry equilibrium • Long run industry supply Exam: Wednesday, March 30 • Coverage: Chapters 9 through 14 • Oligopoly theory (chapter 15) will not be covered. • Review session: Tuesday, March 29, 8:45 p.m. Hickman 101 Today • Is the first full day of spring • Is the last day to withdraw from a course with a W grade. Q Q $/Q $ MR, AR PQ=TR P 1 P Revenue is proportional to Q for a perfect competitor The supply decision • Should the firm produce anything? • If so, what quantity should it produce? Q $ STC(Q) TR(Q) Q π (Q) $ Q* slope = MC(Q*) slope = MR(Q*) = P slope = 0 Q $ STC(Q) TR(Q) Q π (Q) $ Q* At Q*, MR = MC Q $ STC(Q) TR(Q) Q π (Q) $ MR = MC at π minimum, too Q' Q* in terms of MR, MC curves Q $/Q SMC MR P 1 Q* in terms of MR, MC curves Q $/Q SMC MR P 1 Q*(P 1 ) Q* in terms of MR, MC curves Q $/Q SMC Q*(P 2 ) MR P 2 MR P 1 Q* in terms of MR, MC curves MR P 2 Q $/Q SMC Q*(P 3 ) MR P 1 MR P 3 Q* in terms of MR, MC curves P 2 Q $/Q SMC P 1 P 3 Our story, with calculus ( ) ( ) ( ) ( ) ( ) ( ) 2 2 > ′ < − = = = − = − = − ⋅ = C SM dQ Q dSMC dQ d Q SMC P Q SMC P dQ d dQ Q dSTC P dQ d Q STC Q P Q π π π π Our story, with calculus ( ) ( ) ( ) ( ) ( ) ( ) 2 2 > ′ < − = = = − = − = − ⋅ = C SM dQ Q dSMC dQ d Q SMC P Q SMC P dQ d dQ Q dSTC P dQ d Q STC Q P Q π π π π Our story, with calculus ( ) ( ) ( ) ( ) ( ) ( ) 2 2 > ′ < − = = = − = − = − ⋅ = C SM dQ Q dSMC dQ d Q SMC P Q SMC P dQ d dQ Q dSTC P dQ d Q STC Q P Q π π π π Our story, with calculus ( ) ( ) ( ) ( ) ( ) ( ) 2 2 > ′ < − = = = − = − = − ⋅ = C SM dQ Q dSMC dQ d Q SMC P Q SMC P dQ d dQ Q dSTC P dQ d Q STC Q P Q π π π π Our story, with calculus ( ) ( ) ( ) ( ) ( ) ( ) 2 2 > ′ < − = = = − = − = − ⋅ = C SM dQ Q dSMC dQ d Q SMC P Q SMC P dQ d dQ Q dSTC P dQ d Q STC Q P Q π π π π Our story, with calculus ( ) ( ) ( ) ( ) ( ) ( ) 2 2 > ′ < − = = = − = − = − ⋅ = C SM dQ Q dSMC dQ d Q SMC P Q SMC P dQ d dQ Q dSTC P dQ d Q STC Q P Q π π π π Our story, with calculus...
View
Full Document
 Spring '08
 sheflin
 Economics, Microeconomics, Oligopoly, TFC, SATC

Click to edit the document details