Perfect Competition - Perfect Competition 1 The existence...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Perfect Competition: 1) The existence of a standardized product 2) Price taking behavior on the part of firms 3) Perfect long-run mobility of factors of production 4) Perfect information on the part of consumers Short-run profit maximization for a perfectly competitive firm occurs at the quantity where price equals marginal cost, P = MC Chpt. 11) 1) Economic Profit includes total costs minus also expenses, including implicit and explicit. Accounting profit is just total revenue minus explicit costs – it doesn’t take into account . Economic profit can be used to thinkabout the profit over and above the normal profit leve. 2) When there is the existence of a standardized product, when there is perfect long- run mobility of factors of production, and when there is perfect info on the part of consumers 3) No, in the small town might be the only store Large, yes if implicit costs saem. 4) ---- Derived Demand: Price constraint – minimum wage Price Floor Price Ceilings Under a binding min. wage could a firm ever be better off by offering more than the min wage? never
Image of page 1

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

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '13
  • WEBER
  • Economics, demanders, total profits, Chpt., min wage

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern