This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Competition 3. Productive resources are mobile 4. Buyers and sellers are well informed. Chapter 6: Perfectly Competitive Supply Slide 16 Market Supply and Demand Determine Market Price P Q S D Market Quantity (units/month) Price ($/unit) Chapter 6: Perfectly Competitive Supply Slide 17 D i P The Demand Curve Facing a Perfectly Competitive Firm Individual Firms Quantity (units/month) Individual firm demand Chapter 6: Perfectly Competitive Supply Slide 18 Profit-Maximizing Firms in Perfectly Competitive Markets Concepts of production z Factor of production An input used in the production of a good or service. z Short run A period of time sufficiently short that at least some of the firms factors of production are fixed....
View Full Document
- Spring '08