ECON 1000 Lecture Notes - Lecture 14: Average Variable Cost, Average Cost, Pearson Education

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Gordana Colby

Document Summary

12. 1 what is perfect competition: perfect competition occurs in a market where there are many firms, each selling, an identical product, a similar product, a unique product, a capital-intensive product, a competitive product. Topic: what is perfect competition: a price-taking firm faces a, perfectly inelastic demand, downward-sloping marginal revenue curve, downward-sloping supply curve, perfectly elastic demand, downward-sloping demand curve. Parkin/bade, economics: canada in the global environment, 8e: the slope of a perfectly competitive firm"s demand curve is, infinity, zero, 1, greater than 1, negative. Curve a represents the firm"s: total fixed cost curve, average fixed cost curve, average variable cost curve, total revenue curve, marginal revenue curve. Topic: what is perfect competition: refer to figure 12. 1. 1. The firm competes in a perfectly competitive market. Curve a is a straight line because the firm: is a price taker, faces constant returns to scale, wants to maximize profits, has perfect information, has constant marginal cost.