1. Ch 9 Perfect Competition

2. Characteristics Fragmented Undifferentiated products Perfect information about prices equal Access to resources

3. Implications Price taker Law of one price Zero-profit in the long run

4. Economic Profit Economic profit vs account profit

5. FIGURE 9-1 Profit Maximization by a Price-Taking Firm Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-01 (Figure continues on next slide)

6. FIGURE 9-1 (Continued) Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-01 continued

7. Costs

8. Supply curve

9. When fixed costs are all sunk

10. FIGURE 9-2 Short-Run Supply Curve for a Price-Taking Firm Whose fixed costs are all sunk : P=0.05 q=25, loss=TFC+(avc25-P)25 ;q=0,;loss=TFC

11. FIGURE 9-3 Short-Run Supply Curve for a Firm with Nonsunk Fixed Costs P=0.15,q=35, 則 loss=TFC+35(ansc35-0.15) q=0,loss=TFC

12. FIGURE 9-4 Supply Curve for Learning-By-Doing Exercise 9.2 Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-04

13. FIGURE 9-5 Supply Curve for a U.S. Corn Farmer Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-05

14. SHORT-TUN MARKET SUPPLY CURVE

15. FIGURE 9-6 Short-Run Market Supply Curve Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-06

16. FIGURE 9-7 Supply Curves for Copper in 2000 Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-07

17. FIGURE 9-8 Perfectly Inelastic and Perfectly Elastic Supply Curves Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-08

18. FIGURE 9-9 Short-Run Equilibrium Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-09

19. Comparative Static

20. FIGURE 9-10 Comparative Statics Analysis: Increase in the Number of Firms Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-10

21. FIGURE 9-11 The Impact of a Shift in Demand on Price Depends on the Price Elasticity of Supply Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-11

22. FIGURE 9-12 The Short-Run Supply Curve for Roses Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-12

23. FIGURE 9-13 The Price of Electricity in the Nord Pool, 1999 Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-13

24. Long-run output and plant-size adjustments

25. FIGURE 9-14 Long-Run Output and Plant Size Adjustment by a Price-Taking Firm Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-14

26. FIGURE 9-15 The Firm’s Long-Run Supply Curve Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-15

27. Free entry and long-run equilibrium

28. FIGURE 9-16 Long-Run Equilibrium in a Perfectly Competitive Market Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-16

29. FIGURE 9-17 Relationship Between Number of Internet Service Providers and the Size of the Market in 1998 Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-17

30. Long-run market supply curves Input prices changes

31. FIGURE 9-18 Long-Run Industry Supply Curve Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-18

32. FIGURE 9-19 Spot Price to Charter a Supertanker, January 1973-March 1976 Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-19

33. FIGURE 9-20 The Collapse of the Oil Tanker Market, 1973–1975 Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-20

34. FIGURE 9-21 Long-Run Industry Supply Curve in an Increasing-Cost Industry Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-21

35. FIGURE 9-22 Economic Rent Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-22

36. FIGURE 9-23 Producer Surplus for a Price-Taking Firm Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-23

37. FIGURE 9-24 Market-Level Producer Surplus: Number of Firms in the Industry is Fixed Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-24

38. FIGURE 9-25 Producer Surplus in the World Copper Market Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-25

39. FIGURE 9-26 Producer Surplus at the Long-Run Equilibrium in an Increasing-Cost Industry Besanko & Braeutigam/Microeconomics: An Integrated Approach Chapter 9, Figure 09-26