Textbook Notes (367,747)
Canada (161,363)
Economics (923)
ECN 104 (388)
Chapter 14

Chapter 14 - Firms in Competitive Markets
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Department
Economics
Course
ECN 104
Professor
Tsogbadral Galaabaatar
Semester
Fall

Description
Chapter 14Characteristics of Perfect Competition 1 Many buyers and many sellers 2 The goods offered for sale are largely the same 3 Firms can freely enter or exit the market The Revenue of a Competitive FirmTotal revenue TR Average revenue ARMarginal revenue MR The change in TR fromselling one more unitMRPfor a Competitive FirmA competitive firm can keep increasing its output without affecting the market priceSo each oneunit increase in Q causes revenue to rise by P ieMRP Profit MaximizationWhat Q maximizes the firms profitTo find the answer think at the margin If increase Q by on
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