Micro economic PERFECT COMPETITION参考.ppt

* * * * * * * * * * Notes and teaching tips: 17, 37, 49, 56, and 55. To view a full-screen figure during a class, click the red “expand” button. To return to the previous slide, click the red “shrink” button. To advance to the next slide, click anywhere on the full screen figure. * * * * * * * * * * * * * * Marginal revenue curve Students don’t find the concept of marginal revenue difficult, but they do need to be clear on the intuition of the MR curve and the reason why MR P for a single-price monopoly. This fact is the central source of the monopoly predictions. * * * * * * * * * * * * * * * * * * * * Watching the work of the invisible hand. The power of the market to make firms respond to consumers’ changing demands become visible to the student in this section. When you teach this material, do the analysis with a specific (and current/recent) example with which the students can identify. Computers and ISPs are good for an increase in demand. Audio tapes are good for a decrease in demand. * * * * * * * * * * * * * * * * * * * * Pulling it all together In this section, you can show your students what they’ve learned and pull together the entire course to date. Begin by reiterating the two primary goals of this chapter and then note that you are now dealing with the second goal. Emphasize that the pressures of competition force self-interested firms to produce incredible long run results: Each firm produces at the lowest possible average total cost –at the minimum point of the long run average cost curve, Consumers pay the lowest possible price that keeps firms in business—P equals minimum ATC. Each firm uses the least-cost technology, Firms produce the efficient quantity—price, which equals marginal benefit equals marginal cost. The forces of competition, which Adam Smith called an invisible hand, guide firms to produce output and charge prices that maximize the value of our scarce resources. * * * * * * * * * Temporary shutdown. In our experience, this topi