PHASE 2- OPENSTAX CH.8: Perfect Competition Flashcards Preview

APEC1101H-SEM1 > PHASE 2- OPENSTAX CH.8: Perfect Competition > Flashcards

Flashcards in PHASE 2- OPENSTAX CH.8: Perfect Competition Deck (3)
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1

firms are in perf comp when

many firms produce identitcal products, many buyers are avialbe to buy product and many sellers available to sell product, buyers and sellers have all relevant info to make rational deciisons about product being sold, firms can enter and exit market without restrictions, free entry and exit in and out of market

2

profit is

tr - tc

p x qprod - avg cost x q produced

3

long run qequiblirium

where no new firms want to enter market and no exisitn gfirms want to leave market, profit 0, p = mr = mc, p = ac