MBA管理经济学精品PPT课件
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❖ All firms produce a homogeneous product ❖ Entry into & exit from the market is
unrestricted
11-3
Demand for a Competitive Price-Taker
❖ Demand curve is horizontal at price determined by intersection of market demand & supply
and identify economic rent and producer surplus
❖ Find the profit‐maximizing level of a variable input
❖ Employ empirically estimated values of market price,
❖ Find short‐run profit‐maximizing output, derive firm and
industry supply curves, and identify producer surplus
❖ Explain characteristics of long‐run competitive equilibrium for a firm, derive long‐run industry supply,
~ Managers should ignore profit margin (average profit) when making optimal decisions
Profit = π = TR - TC 11-6
Profit-Maximization in the Short Run
❖ In the short run, the firm incurs costs that
are:
~ Unavoidable and must be paid even if output is zero
average variable cost, and marginal cost to calculate
profit‐maximizing output and profit
11-2
Perfect Competition
❖ Firms are price-takers
~ Each produces only a very small portion of total market or industry output
~ Perfectly elastic
❖ Marginal revenue equals price
~ Demand curve is also marginal revenue curve
(D = MR)
❖ Can sell all they want at the market price
~ Each additional unit of sales adds to total revenue an amount equal to price
costs
11-7
Profit Margin (or Average Profit)
❖ Level of output that maximizes total profit occurs at a higher level than the output that maximizes profit margin (& average profit)
Chapter 11 Managerial Decisions in
Competitive Markets
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
11-4
Demand for a Competitive Price-Taking Firm (Figure 11.2)
S
Price (dollars) Price (dollars)
P0
P0
DLeabharlann Baidu= MR
D
0
Q0
Quantity
0
Quantity
Panel A – Market
Panel B – Demand curve facing a price-taker 11-5
~ Variable costs that are avoidable if the firm chooses to shut down
❖ In making the decision to produce or shut
down, the firm considers only the
(avoidable) variable costs & ignores fixed
❖ Discuss 3 characteristics of perfectly competitive markets
❖ Explain why the demand curve facing a perfectly
competitive firm is perfectly elastic and serves as the firm’s marginal revenue curve
~ If shut down, firm loses amount equal to TFC
2. If produce, what is the optimal output level?
~ If firm does produce, then how much? ~ Produce amount that maximizes economic profit
Profit-Maximization in the Short Run
❖ In the short run, managers must make two decisions:
1. Produce or shut down?
~ If shut down, produce no output and hires no variable inputs
unrestricted
11-3
Demand for a Competitive Price-Taker
❖ Demand curve is horizontal at price determined by intersection of market demand & supply
and identify economic rent and producer surplus
❖ Find the profit‐maximizing level of a variable input
❖ Employ empirically estimated values of market price,
❖ Find short‐run profit‐maximizing output, derive firm and
industry supply curves, and identify producer surplus
❖ Explain characteristics of long‐run competitive equilibrium for a firm, derive long‐run industry supply,
~ Managers should ignore profit margin (average profit) when making optimal decisions
Profit = π = TR - TC 11-6
Profit-Maximization in the Short Run
❖ In the short run, the firm incurs costs that
are:
~ Unavoidable and must be paid even if output is zero
average variable cost, and marginal cost to calculate
profit‐maximizing output and profit
11-2
Perfect Competition
❖ Firms are price-takers
~ Each produces only a very small portion of total market or industry output
~ Perfectly elastic
❖ Marginal revenue equals price
~ Demand curve is also marginal revenue curve
(D = MR)
❖ Can sell all they want at the market price
~ Each additional unit of sales adds to total revenue an amount equal to price
costs
11-7
Profit Margin (or Average Profit)
❖ Level of output that maximizes total profit occurs at a higher level than the output that maximizes profit margin (& average profit)
Chapter 11 Managerial Decisions in
Competitive Markets
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
11-4
Demand for a Competitive Price-Taking Firm (Figure 11.2)
S
Price (dollars) Price (dollars)
P0
P0
DLeabharlann Baidu= MR
D
0
Q0
Quantity
0
Quantity
Panel A – Market
Panel B – Demand curve facing a price-taker 11-5
~ Variable costs that are avoidable if the firm chooses to shut down
❖ In making the decision to produce or shut
down, the firm considers only the
(avoidable) variable costs & ignores fixed
❖ Discuss 3 characteristics of perfectly competitive markets
❖ Explain why the demand curve facing a perfectly
competitive firm is perfectly elastic and serves as the firm’s marginal revenue curve
~ If shut down, firm loses amount equal to TFC
2. If produce, what is the optimal output level?
~ If firm does produce, then how much? ~ Produce amount that maximizes economic profit
Profit-Maximization in the Short Run
❖ In the short run, managers must make two decisions:
1. Produce or shut down?
~ If shut down, produce no output and hires no variable inputs