1、1,chp 12 Managerial Decisions in Competitive Markets,Market can be divided into 4 basic groups: Perfect competition Monopoly Monopolistic competition OligopolyIn this chapter the first 3 will be discussed.,2,Characteristics of market structure,3,What is the difference between,Perfect competition Mon
2、opolyMonopolistic competition,Market conditions are given and no need to consider your competitors.,Oligopoly,React to your competitors actions.,4,（1）The product is identical （2）Each firm cannot affect the market price （3）There exists unrestricted entry （4）Full and complete knowledge,12.1Characteris
3、tics of Perfect Competition,5,Q,Q,P,P,E,D,S,d,O,O,Pe,Pe,Market,Demand curve Facing A Perfect Competitor,12.2Demand Facing A Perfectly Competitive Firm,6,Q（千万）,P,E,D,O,PE,Individual firm,Market Demand curve,QE,Market Price,7,8,Q,P,d（AR = MR = P）,O,Pe,SMC,SAC,Qe,Q1,Q2,E,边际收益等于边际成本原则分析一,12.3Profit Maxi
4、mization In The Short Run,9,Positive Economic Profit,Q,P,d1（AR1 = MR1 = P1）,O,P1,SMC,SAC,Q1,Q2,E1,AVC,E2,P2,F1,d2（AR2 = MR2 = P2）,Break-even points,10,Q,P,O,SMC,SAC,Q3,AVC,d3（AR3 = MR3 = P3）,d4（AR4 = MR4 = P4）,E3,E4,P3,P4,Q4,F3,E2,Shut down the firm,F4,The Firm Operates at a Loss,11,Q,P,O,SMC,SAC,AV
5、C,d5（AR5 = MR5 = P5）,E5,P5,Q5,F5,E4,E2,G5,12,Q,P,d1（AR1 = MR1 = P1）,O,P1,SMC,SAC,Q3,Q1,Q2,E1,AVC,d2（AR2 = MR2 = P2）,d3（AR3 = MR3 = P3）,d4（AR4 = MR4 = P4）,d5（AR5 = MR5 = P5）,E2,E3,E4,E5,P2,P3,P4,P5,Q4,Q5,Short term Equilibrium under Perfect competition,13,ILLUSTRATION 12.1,Do R&D Expenditures Affect
6、Drug Prices?p441,14,12.4SHORT-RUN SUPPLY FOR THE FIRM AND INDUSTRY,Q,P,O,P1,SMC,Q3,Q1,Q2,P2,P3,P4,Q4,AVC,QS = f（P）,E2,E3,E4,E1,15,Individual firm,INDUSTRY,16,Q,P,d1（AR1 = MR1 = P1）,O,LMC,LAC,Q3,Q1,Q2,d2（AR2 = MR2 = P2）,d3（AR3 = MR3 = P3）,E3,E2,E1,P3,P2,P1,12.3Profit Maximization In The Long Run,F1,F
7、3,17,Long term Equilibrium under Perfect competition,18,ILLUSTRATION 12.1,Do R&D Expenditures Affect Drug Prices?The rest of the story p445,19,判断下列说法是否正确1、完全竞争市场条件下，如果对商品的生产增加税收，则税收的负担主要落在生产者头上，如果对商品的销售增加税收，则增税的负担主要落在消费者头上。（北大1998）,20,由于在长期均衡时，完全竞争的市场上利润必等于零，企业进入某行业最后都会处于零利润状态，因此企业就无必要进入。 （北大2000）如果
8、一个厂商是追求利润最大化的，那么它就不应该在亏损的状态下维持它得到的利润。 （北大1997）,21,如果一厂商的MPa=5，MPb=12，同时Pa=3，Pb=7.2，则这个场上达到了利润极大均衡。你认为这句话对吗？,22,某企业有新旧两台机器，平时旧机器只是备用，试问在什么情况下这台旧机器才会被投入使用？从中你可以得出什么结论？,23,1. Which of the following is a condition of perfect competition? A. products produced by rival firms are perfect substitutes B. ind
9、ividual firms can affect market supply C. industry sales are small D. restricted entry and exit E. firms do not have complete knowledge about production and prices,24,2. For a firm in a perfectly competitive market, marginal revenue? A. is the addition to total revenue from producing one more unit o
10、f output. B. is equal to price at any level of output. C. decreases as the firm produces more output. D. both a and b E. both a and c,25,3. The next two questions refer to the following figure:,26,If the firm is producing 100 units of output, increasing output by one unit would _ the firms profit by
11、 $_. A. decrease, $2 B. increase, $2 C. increase, $1 D. decrease, $1 E. increase, $3,27,4. If the firm is producing 200 units of output, decreasing output by one unit would _ the firms profit by $_. A. increase, $2 B. decrease, $2 C. increase, $3 D. decrease, $5 E. increase, $5,28,5. In order to min
12、imize losses in the short run, a perfectly competitive firm should shut down if? A. total revenue is less than total cost. B. total revenue is less than total fixed cost. C. total revenue is less than the difference between total fixed cost and total variable cost. D. total revenue is less than tota
13、l variable cost.,29,6. When a perfect competitive industry is in long-run equilibrium, A. firms have incentives to enter or exit the industry. B. market price is equal to minimum long-run average cost. C. each firm earns a normal return. D. both b and c E. all of the above,30,7. The next 4 questions
14、 refer to the following figure:,31,If market price is $50, how much output will the firm produce? A. 0 units B. 100 units C. 300 units D. 400 units,32,8. If market price is $50, how much profit will the firm earn? A. $12,000 B. $15,000 C. $3,000 D. $6,000,33,9. If market price is $20, how much profi
15、t will the firm earn? A. zero B. -$3,000 C. $3,000 D. $300,34,10. At what level of output will the firm break even? A. 100 B. 200 C. 250 D. 350,35,Q,P,O,P1,SMC,LAC,Qi1,E,SAC,Qi2,D1,D2,SS1,SS2,O,P1,P2,Q2,Q1,Q3,A,B,LS,Q,P,Typical firm,industry,Constant-cost Industry,P2,LONG-RUN SUPPLY FOR THE INDUSTRY,36,Q,P,O,P1,SMC1,Qi1,E1,SAC1,Qi2,D1,D2,SS1,SS2,O,P1,P2,Q2,Q1,A,B,LS,Q,P,Typical firm,industry,SMC2,E2,SAC2,P2,Increasing-cost industry,37,Q,P,O,P1,SMC2,Qi2,E2,SAC2,Qi1,D1,D2,SS1,SS2,O,P1,P2,Q2,Q1,A,B,LS,Q,P,Typical firm,industry,SMC1,E1,SAC1,P2,decreasing-cost industry,
