slides chapter 9 pure competition in the long run · easy enter and exit identical constant - costs...

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Chapter 9

Easy enter and exit

Identical costsConstant -

cost industry

MC

ATC

MRProfit

S1

S2

Q1 Q2

Loss

MC

ATC

MR

D1D2

Profit

S1

S2

Q1 Q2

Loss

MC

ATC

MR

D1D2

Profit

S1

S2

Q1 Q2

Break Even

Q1 Q2 Q3

Price

Q1

Q2

Q3

Price

Q1

Q2

Q3

Price

MC

ATC

MR

Q1

Break Even

S

Equilibrium

Consumer Surplus

Producer Surplus

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