10

Chapter 9

Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

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Page 1: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

Chapter 9

Page 2: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

Easy enter and exit

Identical costsConstant -

cost industry

Page 3: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

MC

ATC

MRProfit

S1

S2

Q1 Q2

Loss

Page 4: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

MC

ATC

MR

D1D2

Profit

S1

S2

Q1 Q2

Loss

Page 5: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

MC

ATC

MR

D1D2

Profit

S1

S2

Q1 Q2

Break Even

Page 6: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

Q1 Q2 Q3

Price

Page 7: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

Q1

Q2

Q3

Price

Page 8: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

Q1

Q2

Q3

Price

Page 9: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

MC

ATC

MR

Q1

Break Even

S

Equilibrium

Consumer Surplus

Producer Surplus

Page 10: Slides Chapter 9 Pure Competition in the Long Run · Easy enter and exit Identical Constant - costs cost industry. MC ATC MR Profit S1 S2 Q1 Q2 Loss. MC ATC MR D1 D2 Profit S1 S2

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