A perfectly competitive market is a market in which all market participants are price-takers. A price-taking consumer is a consumer whose actions have no effect on the market price of the good he or she buys. What a perfectly competitive market is and the characteristics of a perfectly competitive industry How a price-taking producer determines its profit-maximizing quantity of output How to assess whether a producer is profitable and why an unprofitable producer may continue to operate in the short run Why industries behave differently in the short run than in the long run What determines the industry supply curve in both the short run and the long run WHAT YOU WILL LEARN IN THIS CHAPTERģ Perfect Competition A price-taking producer is a producer whose actions have no effect on the market price of the good it sells.
THIRD EDITION ECONOMICS and MICROECONOMICS Paul Krugman | Robin Wells Chapter 12 Perfect Competition and the Supply Curve 1 Perfect Competition and the Supply Curve
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