ECON 1000 Lecture Notes - Lecture 8: Competitive Equilibrium, Economic Surplus, Marginal Revenue
castroariane563 and 39059 others unlocked
10
ECON 1000 Full Course Notes
Verified Note
10 documents
Document Summary
Perfect competition: many firms sell identical products to many buyers. There are no restrictions on entry into the market. Sellers and buyers are well informed about prices. Price quantity: marginal revenue: the change in total revenue that results from a one-unit increase in the quantity sold, tr curve is upward-sloping straight line. 8: horizontal demand curve illustrates a perfectly elastic demand, so the demand for the firm"s product is. As new firs enter a market, the market price falls and the economic profit of each firm decreases. Firms exit a market in which they are incurring economic loss. As firms leave a market, the market price rises and the economic loss incurred by the remaining firms decreases,