Chapter
22
Perfect
Competition
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
22­1
Chapter
Objectives
The
characteristics
of
perfect
competition
The
perfect
competitor’s
demand
curve
The
short
run
and
and
the
long
run
Economic
and
accounting
profits
Decreasing,
constant,
and
increasing
cost
industries
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
22­2
Perfect
Competition
Is
the
first
of
four
competitive
modes
It
is
a
theoretical
model
that
does
not
exist
in
the
real
world
This
will
serve
as
the
standard
by
which
we
will
measure
the
next
three
competitive
models
Monopoly
Monopolistic Competition
Oligopoly
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
22­3