1. MicroeconomicsPERFECTLY COMPETITIVE MARKET Tutor:
Ms.21/11/2013Minh AnhGroup 6 Tut 2 AC V Hng Ngc Phm Th Thu Phng Dng
Thu Huyn Nguyn Diu Anh
2. Overview Profit maximization issue21/11/2013Characteristics
of the firmHow the firm make decision in short-run and long-run 3.
Characteristics of the firm Characteristics of perfectly
competitive market-There are many buyers and many sellers in the
market-The goods offered are functionally identical products-There
is freedom of market entry and exit21/11/2013 4. Characteristics of
the firm Characteristics of the firm (focus on characteristics of
perfectly competitive market)- There are many buyers and many
sellers in the market Market: Education simulation software Buyers:
students all over the worldSellers:21/11/2013 5. Characteristics of
the firm Characteristics of the firm (focus on characteristics of
perfectly competitive market)-There are many buyers and many
sellers in the market-The goods offered are functionally identical
products Many sellers: same products=> Price taker21/11/2013 6.
Characteristics of the firm Characteristics of the firm (focus on
characteristics of perfectly competitive market)-There are many
buyers and many sellers in the market-The goods offered are
functionally identical products-There is freedom of market entry
and exitMcGraw-Hill/Irwin can freely enter or exit the
market21/11/2013 7. Cost Relevant to McGraw-Hill/Irwin Quantity of
software21/11/20130 1 2 3 4 5 6 7 8 9 10Price35 35 35 35 35 35 35
35 35 35ATC68 44 34.67 29.5 26 24.5 24.14 24.88 26.56 29.3AVC28 24
21.33 19.5 18 17.83 18.43 20.5 23.11 25.4MC28 20 16 14 12 17 22 35
44 54 2004 The McGraw-Hill Companies, Inc., All Right Reserved. 8.
The firms maximization output Q 880P 35ATC 24.88MC 3570 60Profit
maximization50P40ATC MC30 20 100 012345678Q max 21/11/2013910 9.
Short-run decision: Shut-down? 80706050ATC40AVC MC3020100
021/11/201312345678910 10. Long-run decision 8070605040MC
ATC3020100 0 21/11/201312345678910 11. 21/11/2013 12.
21/11/2013
