A guide to understand Perfect Competition
Define market in terms of its features
Learn about market structure and its different forms
Understand basic concepts of revenue and costs
Explain basic postulates of perfect competition
Explain equilibrium of a perfectly competitive (PC) firm both in the short-run and long-run
Interpret the Production decision of PC firm in the short-run
Illustrate when a firm produces facing loss
The course contains four sections.
Section A defines market introducing its essential features. It also defines market structure and its different forms. The basic concepts of revenue and costs that are necessary to understand the operation of firms in different market structures are discussed in detail.
Section B works with basic postulates of Perfect Competition (PC) . The price taking role of firm under PC that makes it unique from firms in other market structure is discussed in detail. The concepts of total revenue (TR), average revenue (AR) and marginal revenue (MR) under PC is explained.
Section C focuses on the short-run equilibrium of PC firm. In this section, learners will also be able to know the production decision of a PC firm in the short-run. Firm’s super normal profit situation, normal profit or break even situation, and the situation of loss will be examined with necessary illustrations.
Whether firm produces in the short-run facing loss or not is an important issue. Section D provides a detail when a firm under PC produces in the short-run and when it stops operation facing loss. It ends with the examination of lung run equilibrium of PC firm.
The course consists of 20 lectures and a total of 1 hour 40 minutes. It combines both mathematical and graphical contents where possible, so that one can learn alternative ways of interpreting the concepts.
The course is designed considering the desire of students of economics and business. But the contents are arranged in such a way that learners from other disciplines can easily go through the course.
Course Published By Abdullahil Mamun (Average rating- 4.7/5, Total Ratings- 20 )
Short Biography of Instructor:
I am a practicing academician of Economics at IIUC and currently working as a fellow of the Scientific and Technological Research Council of Turkey (TUBITAK). I have more than 10 years of teaching experiences both at undergraduate (BBA) and post graduate (MBA) levels. I am extremely passionate in teaching and thus here to share my teaching experiences with students worldwide.
Free Understanding Markets: Perfect Competition course