(1) Characteristics of Perfect Competition
Perfect Competition, Barriers to Entry, Total Revenue, Average Revenue, Marginal Revenue
This identifes the characteristics of the market structure of Perfect Competition. It explains why these characterisics are important and explains that these have implications for the revenue functions and decision making of the firm. Total, Average and Marginal Revenue Functions are described and graphed. Finally, these revenue functions are combined with cost functions to examine profitability, using both the totals and the average/marginal approaches.
Crane, Steven E., "(1) Characteristics of Perfect Competition" (2011). Principles of Microeconomics. Paper 41.
Ability to identify and explain the standard characteristics of a Perfectly Competitive Firm. Ability to explain the consequences for the firm's revenue functions, and to graph these functions. Ability to combine revenue and cost functions in a single graph and do profit-volume analysis using both the totals and the average/marginal approaches.
Overview of Market Structure and Short Run Cost Videos