IN THIS CHAPTER YOU WILL LEARN:

1. The names and main characteristics of the four basic market models.



2. The conditions required for purely competitive markets.



3. How purely competitive firms maximize profits or minimize losses.



4. Why the marginal-cost curve and supply curve of competitive firms are identical.



5. How industry entry and exit produce economic efficiency.



6. The differences between constant-cost, increasing-cost, and decreasing-cost industries.



7. How long-run competitive equilibrium results in economic efficiency.