Microeconomics,, 16th Canadian Edition

Does MasterCard compete with Visa? Does a wheat farmer from Biggar, Saskatchewan, compete with a wheat farmer from Brandon, Mani ...

9.1 Market Structure and Firm Behaviour The term market structure refers to all the features that may affect the behaviour and p ...

This extreme is called a perfectly competitive market. In such a market there is no need for individual firms to compete activel ...

Competitive Behaviour In everyday language, the term competitive behaviour refers to the degree to which individual firms active ...

9.2 The Theory of Perfect Competition The perfectly competitive market structure—usually referred to simply as perfect competiti ...

4. The industry is characterized by freedom of entry and exit; that is, any new firm is free to enter the industry and start pro ...

A wheat farmer in Saskatchewan does not “compete” in any real way with a wheat farmer elsewhere in the world. However, both exis ...

13. 1 The Demand for Factors Competitive Firm A major distinction between firms in perfectly competitive markets and firms in an ...

Figure 9-1 The Demand Curve for a Competitive Industry and for One Firm in the Industry The competitive industry’s demand curve ...

curves, any increase in the industry’s output (caused by an increase in supply) will cause some fall in the market price. Howeve ...

Total, Average, and Marginal Revenue farm decided in one year to produce nothing and in another year managed to produce twice th ...

To study the revenues that firms receive from the sale of their products, economists define three concepts called total, average ...

Figure 9-2 Revenues for a Price-Taking Firm Total revenue rises by $3 for every bushel sold. Because every bushel brings in $3, ...

revenue nor average revenue varies with output. In the table, marginal revenue is shown between the rows because it represents t ...

9.3 Short-Run Decisions We learned in Chapter 7 how each firm’s costs vary with its output in the short run. Recall that in the ...

Should the Firm Produce at All? The firm always has the option of producing nothing (even while staying in business). If it prod ...

Table9-1 Negative Profits and the Firm’s Shut-Down Decision will soon see, the firm’s best option in this case is to produce som ...

Rule 1: A firm should not produce at all if, for all levels of output, total revenue (TR) is less than total variable cost (TVC) ...

Figure 9-3 Shut-Down Price for a Competitive Firm shut-down price Such a price is shown in Figure 9-3 and is equal to the lowest ...

How Much Should the Firm Produce? If a firm decides that, according to Rule 1, production is worth undertaking, it must then dec ...