1. Perfect Competition Cost Curve Collection
Slides 2-5 depict a perfectly competitive market and a firm in that market. The progression from slide 2 through 4 show the areas of total revenue (TR), total cost (TC), and profit.
Slides 6-9 illustrate a decrease in demand and how the new market price reduces TR and causes the firm to operate at a loss. The decrease drives the price below the ATC of the firm, which decreases total revenue and produces a loss for the firm. The firm is covering its variable costs and part of its fixed costs.
Slides illustrates a further decrease in demand, reducing the price for the firm to a point below the AVC curve. The slides indicate even greater loss. At this point, the firm will shut down to minimize losses, but it will still be obligated to its fixed costs.
Slides could be considered a set. The curves in slides are based on the table in slide 14. The table could be printed so that students would have it handy while viewing the graphs. For best results, print the table in "landscape" orientation.

2. Perfect Competition The Industry The Firm Price Price S MC ATC P P
D=MR
AVC D0 Q
Quantity Q
Quantity

3. Perfect Competition The Industry The Firm Price Price S MC ATC P P
D=MR
AVC D0 Q
Quantity Q
Quantity
Total Revenue

4. Perfect Competition Total Cost The Industry The Firm Price Price S MC
ATC P P
D=MR
AVC D0 Q
Quantity Q
Quantity
Total Revenue
Total Cost

5. Perfect Competition Total Cost Profit The Industry The Firm PriceMC
ATC P P
D=MR
AVC D0 Q
Quantity Q
Quantity
Total Revenue
Total Cost
Profit

6. Perfect Competition P0 P1 P D1 Q1 Q0 The Industry The Firm Price PriceMC
ATC P0
AVC P1 P
D=MR D0 D1 Q1 Q0 Q
Quantity
Quantity

7. Perfect Competition P0 P1 P D1 Q1 Q0 Total Revenue The Industry
The Firm
Price
Price S MC
ATC P0
AVC P1 P
D=MR D0 D1 Q1 Q0 Q
Quantity
Quantity
Total Revenue

8. Perfect Competition P0 P1 P D1 Q1 Q0 Total Revenue Total Cost
The Industry
The Firm
Price
Price S MC
ATC P0
AVC P1 P
D=MR D0 D1 Q1 Q0 Q
Quantity
Quantity
Total Revenue
Total Cost

9. Perfect Competition P0 P1 P D1 Q1 Q0 Total Revenue Total Cost Loss
The Industry
The Firm
Price
Price S MC
ATC P0
AVC P1 P
D=MR D0 D1 Q1 Q0 Q
Quantity
Quantity
Total Revenue
Total Cost
Loss

10. Perfect Competition P0 P1 P Q1 Q0 The Industry The Firm Price Price SMC
ATC
AVC P0 P1 P
D=MR D1 D0 Q1 Q0 Q
Quantity
Quantity

11. Perfect Competition P0 P1 P Q1 Q0 Total Revenue The Industry The Firm
Price
Price S MC
ATC
AVC P0 P1 P
D=MR D1 D0 Q1 Q0 Q
Quantity
Quantity
Total Revenue

12. Perfect Competition P0 P1 P Q1 Q0 Total Revenue Total Cost
The Industry
The Firm
Price
Price S MC
ATC
AVC P0 P1 P
D=MR D1 D0 Q1 Q0 Q
Quantity
Quantity
Total Revenue
Total Cost

13. Perfect Competition P0 P1 P Q1 Q0 Total Revenue Total Cost Loss
The Industry
The Firm
Price
Price S MC
ATC
AVC P0 P1 P
D=MR D1 D0 Q1 Q0 Q
Quantity
Quantity
Total Revenue
Total Cost
Loss

14. Quantity of chairs per hour TC FC VC MC AFC AVC ATC
Perfect Competition
Quantity of chairs per hour TC FC VC MC
AFC
AVC
ATC 30 1 45 15
15.00
30.00
45.00 2 55 25
10.00
14.50
27.50 3 63 33
8.00
11.00
21.00 4 70 40
7.00
7.50
17.50 5 80 50
6.00
16.00 6
100
20.00
5.00
11.67
16.67 7
130
4.28
14.28
18.57

15. Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60 70 80 90
100
110
Costs in $s
Quantity (chairs per hour)

16. Perfect Competition TC=Total Cost 1 2 3 4 5 6 7 10 20 30 40 50 60 7080 90
100
110 TC
TC=Total Cost
Costs in $s
Quantity (chairs per hour)

17. Perfect Competition TC=Total Cost 1 2 3 4 5 6 7 10 20 30 40 50 60 7080 90
100
110 TC
TC=Total Cost
Costs in $s
Quantity (chairs per hour)

18. Perfect Competition TC=Total Cost FC=Fixed Cost 1 2 3 4 5 6 7 10 20 3040 50 60 70 80 90
100
110 FC TC
FC=Fixed Cost
TC=Total Cost
Costs in $s
Quantity (chairs per hour)

19. Perfect Competition TC=Total Cost FC=Fixed Cost 1 2 3 4 5 6 7 10 20 3040 50 60 70 80 90
100
110 FC TC
FC=Fixed Cost
TC=Total Cost
Costs in $s
Quantity (chairs per hour)

20. Perfect Competition TC=Total Cost VC=Variable Cost FC=Fixed Cost 1 2 34 5 6 7 10 20 30 40 50 60 70 80 90
100
110 FC VC TC
FC=Fixed Cost
VC=Variable Cost
TC=Total Cost
Costs in $s
Quantity (chairs per hour)

21. Perfect Competition TC=Total Cost VC=Variable Cost FC=Fixed Cost 1 2 34 5 6 7 10 20 30 40 50 60 70 80 90
100
110 FC VC TC
FC=Fixed Cost
VC=Variable Cost
TC=Total Cost
Costs in $s
Quantity (chairs per hour)

22. Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60 Costs in $s
Quantity (chairs per hour)

23. Perfect Competition MC=Marginal Cost 1 2 3 4 5 6 7 10 20 30 40 50 60
Costs in $s
Quantity (chairs per hour)

24. Perfect Competition MC=Marginal Cost 1 2 3 4 5 6 7 10 20 30 40 50 60
Costs in $s
Quantity (chairs per hour)

25. AFC=Average Fixed Cost MC=Marginal Cost
Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60
AFC MC
AFC=Average Fixed Cost
MC=Marginal Cost
Costs in $s
Quantity (chairs per hour)

26. AFC=Average Fixed Cost MC=Marginal Cost
Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60
AFC MC
AFC=Average Fixed Cost
MC=Marginal Cost
Costs in $s
Quantity (chairs per hour)

27. AFC=Average Fixed Cost AVC=Average Variable Cost MC=Marginal Cost
Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60
AFC
AVC MC
AFC=Average Fixed Cost
AVC=Average Variable Cost
MC=Marginal Cost
Costs in $s
Quantity (chairs per hour)

28. AFC=Average Fixed Cost AVC=Average Variable Cost MC=Marginal Cost
Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60
AFC
AVC MC
AFC=Average Fixed Cost
AVC=Average Variable Cost
MC=Marginal Cost
Costs in $s
Quantity (chairs per hour)

29. AFC=Average Fixed Cost AVC=Average Variable Cost
Perfect Competition 1 2 3 4 5 6 7 10 20 30 40 50 60
AFC
AVC
ATC MC
AFC=Average Fixed Cost
AVC=Average Variable Cost
ATC=Average Total Cost
MC=Marginal Cost
Costs in $s
Quantity (chairs per hour)