'Shutdown price' presentation slideshows

CH 24 Review Game

CH 24 Review Game. Perfect Competition. Which of the following is NOT characteristic of a perfectly competitive market ? A) The products sold by the firms in the market are homogeneous. B) There are many buyers and sellers in the market.

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Perfect Competition

Perfect Competition. 12. Learning Objectives. What is perfect competition? How does a firm make output decision in the competitive market? Price and output determination in a perfectly competitive market Free entry exit assumption

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$35 30 25 20 0

What is TR?. $300. What is TC?. $250. Profit/Loss per unit?. $5. How much is the profit or loss?. $50. Where is the Shutdown Price?. $22. $35 30 25 20 0. MC. MR=D. ATC. Cost and Revenue. AVC. 22. 1 2 3 4 5 6 7 8 9 10 . 1.

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Recap of last time (Worksheet 8)

Recap of last time (Worksheet 8). Given a specific Total Cost (function of the quantity produced q), recall:. The Breakeven Price (BEP): Is the special price that satisfies: If p < BEP, the producer never makes a profit If p > BEP, the producer makes some profit, for some quantities. $.

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The Shut-Down Decision

The Shut-Down Decision. The Short-Run Production Decision. In the short-run, sometimes the firm should produce even if price falls below minimum ATC Why? Total cost includes fixed cost!

215 views • 0 slides