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