Slide 1PROFIT MAXIMIZATION UNDER COMPETITIVE MARKET CONDITIONS EA SESSION 8 18th July 2005 Prof. Samar K. Datta EA SESSION 8 18th July 2005 Prof. Samar K. Datta Slide 2 2…
Slide 1Second Edition Chapter 11 Costs and Profit Maximization UnderCompetition Competition Slide 2 Chapter Outline What price to set? What quantity to produce? Profits and…
Slide 1Market Power: Monopoly and Monopsony Chapter 9 1 Slide 2 Review of Perfect Competition P = LMC = LRAC Normal profits or zero economic profits in the long run Large…
Summary of the Plot Price Quantity demanded or supplied Demand curve – shows how D depends on P. Also depends on income. Demand curve shifts out as income Rises. The Market…