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Pure Competition
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FOUR MARKET MODELS Pure Competition Market Structure Continuum
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FOUR MARKET MODELS Pure Monopoly Market Structure Continuum Pure
Competition Market Structure Continuum
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FOUR MARKET MODELS Imperfect Competition Market Structure Continuum
Pure Competition Pure Monopoly Market Structure Continuum
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FOUR MARKET MODELS Monopolistic Competition Market Structure Continuum
Pure Competition Pure Monopoly Market Structure Continuum
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FOUR MARKET MODELS Oligopoly Market Structure Continuum Pure
Competition Monopolistic Competition Pure Monopoly Market Structure Continuum
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Very Large Numbers Standardized Product Free Entry and Exit
FOUR MARKET MODELS Pure Competition: Very Large Numbers Standardized Product Free Entry and Exit Pure Competition Monopolistic Competition Pure Monopoly Oligopoly Market Structure Continuum
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 $ 0
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 131 1 $ 0 131 ] $131
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 131 1 2 $ 0 131 262 ] $131 131 ]
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 131 1 2 3 $ 0 131 262 393 ] $131 131 ] ]
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 131 1 2 3 4 $ 0 131 262 393 524 ] $131 131 ] ] ]
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 131 1 2 3 4 5 6 7 8 9 10 $ 0 131 262 393 524 655 786 917 1048 1179 1310 ] $131 131 ] ] ] ]
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DEMAND AS SEEN BY A PURELY COMPETITIVE SELLER
Product Price (P) (Average Revenue) Graphically Presented… Quantity Demanded (Q) Total Revenue (TR) Marginal Revenue (MR) $131 131 1 2 3 4 5 6 7 8 9 10 $ 0 131 262 393 524 655 786 917 1048 1179 1310 ] $131 131 ] ] ] ]
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TR P = MR DEMAND, MARGINAL REVENUE, AND TOTAL
REVENUE IN PURE COMPETITION 1179 1048 917 786 655 524 393 262 131 TR Price and revenue P = MR Quantity Demanded (sold)
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MR = MC Rule SHORT RUN PROFIT MAXIMIZATION
Marginal-Revenue -Marginal Cost Approach MR = MC Rule
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Profit Maximization Position
MARGINAL REVENUE-MARGINAL COST APPROACH Profit Maximization Position $200 150 100 50 Economic Profit MC $131.00 MR ATC Cost and Revenue AVC $97.78
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MR = MC Optimum Solution
MARGINAL REVENUE-MARGINAL COST APPROACH Profit Maximization Position $200 150 100 50 Economic Profit MC MR = MC Optimum Solution $131.00 MR ATC Cost and Revenue AVC $97.78
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Short-Run Shut Down Point
MARGINAL REVENUE-MARGINAL COST APPROACH Short-Run Shut Down Point $200 150 100 50 MC ATC Cost and Revenue AVC MR $71.00 Minimum AVC is the Shut-Down Point
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