Economics Denzel Presentation (Perfect Competition)

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Canadian Academy

Economy & Finance Business

Denzel Partnership Presents ,[object Object]

The Nature of Our Market ,[object Object],[object Object],[object Object],[object Object]

The Nature of Our Market ,[object Object],[object Object],[object Object],[object Object],[object Object]

Quantity Cost P = MR= AR= D Long run equilibrium in perfect competition MC AC Qe 0

Long-run equilibrium (industry) Price Quantity S D 0 P Q^ (industry)

Cost Quantity P = MR= AR= D MC AC Q1 C P1 Firm in perfect competition making supernormal profit 0

Price Quantity S1 D P1 Q1 S2 P2 Q2 0 Cost Quantity P1 MC AC Q1 C P1 P2 Q2 The impact on a market of supernormal profit 0

Short-run losses Cost Quantity C P Q Loss MC AC P=MR=AR=D

Break-even price Cost Quantity MC AC P=MR=AR=D

Shut down point Cost Output MC AC P=MR=AR=D AVC C E D B P A P1 Q 0 Loss

How We Determine Cost ,[object Object],[object Object],[object Object],[object Object],[object Object]

Advantages ,[object Object],[object Object],[object Object],[object Object],[object Object]

Disadvantages ,[object Object],[object Object],[object Object],[object Object],[object Object]

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