文档介绍：Firms petitive Markets
Chapter 14
The Meaning petition
A petitive market has the following characteristics:
There are many buyers and sellers in the market.
The goods offered by the various sellers are largely the same.
Firms can freely enter or exit the market.
The Meaning petition
As a result of its characteristics, the petitive market has the following es:
The actions of any single buyer or seller in the market have a negligible impact on the market price.
Each buyer and seller takes the market price as given.
The Meaning petition
Buyers and sellers petitive markets are said to be price takers.
Buyers and sellers must accept the price determined by the market.
Revenue of petitive Firm
Total revenue for a firm is the selling price times the quantity sold.
TR = (P X Q)
Revenue of petitive Firm
Total revenue is proportional to the amount of output.
Revenue of petitive Firm
Average revenue tells us how much revenue a firm receives for the typical unit sold.
Revenue of petitive Firm
In petition, average revenue equals the price of the good.
Revenue of petitive Firm
Marginal revenue is the change in total revenue from an additional unit sold.
MR =TR/ Q
Revenue of petitive Firm
petitive firms, marginal revenue equals the price of the good.