 | Learning Objectives
(See related pages)
In this chapter you will learn:
- The names and main characteristics of the four basic market models.
- The conditions required for purely competitive markets.
- How purely competitive firms maximize profits or minimize losses.
- Why the marginal-cost curve and supply curve of competitive firms are identical.
- How industry entry and exit produce economic efficiency.
- The differences between constant-cost, increasing-cost, and decreasing-cost industries.
- How long-run competitive equilibrium results in economic efficiency.
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