March 18, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
PERFECT COMPETITION, FACTOR MARKET ANALYSIS: The analysis of a factor market characterized by perfect competition indicates that each buyer maximizes profit by equating marginal revenue product to the factor price. This achieves an efficient allocation of resources and provides a benchmark for analyzing other factor market structures, including monopsony, monopoly, and bilateral monopoly.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson Contents
Unit 1: Price Taker
  • A Perfect Market
  • Characteristics
  • Revenue
  • Profit Maximization
  • Unit 1 Summary
  • Unit 2: Short-Run Output
  • The Revenue Side
  • The Revenue Numbers
  • The Cost Side
  • Comparing Totals
  • Comparing Marginals
  • Unit 2 Summary
  • Unit 3: Doing Graphs
  • Total Curves
  • Profit Curve
  • Marginal Curves
  • Dividing Revenue
  • Short-Run Alternatives
  • Short-Run Supply
  • Unit 3 Summary
  • Unit 4: Long-Run Equilibrium
  • Long-Run Marginal Cost
  • Adjustment
  • Entry And Exit
  • Equilibrium Conditions
  • Long-Run Supply
  • Unit 4 Summary
  • Unit 5: Evaluation
  • The Good
  • The Bad
  • Market Control
  • Unit 5 Summary
  • Course Home
    Perfect Competition

    • The first unit of this lesson, Price Taker, begins this study with a look at the general structure of a perfectly competitive market.
    • In the second unit, Short-Run Output, we take a look at the short-run production decision faced by a perfectly competitive firm based on the cost and revenue numbers.
    • The third unit, Doing Graphs, then looks at the short-run production decision faced by a perfectly competitive firm using a graphical analysis of cost and revenue.
    • In the fourth unit, Long-Run Equilibrium, we examine the nature of long-run adjustment by a perfectly competition industry when all inputs are variable.
    • The fifth and final unit, Evaluation, then closes this lesson by considering the pros and cons of a perfectly competitive industry.

    BEGIN Lesson =>

    <=PREVIOUS Lesson | NEXT Lesson =>


    A graphical depiction of the relation between aggregate expenditures by the four macroeconomic sectors (household, business, government, and foreign) and the level of aggregate income or production. In Keynesian economics, the aggregate expenditures line is the essential component of the Keynesian cross analysis used to identify equilibrium income and production. Like any straight line, the aggregate expenditures line is characterized by vertical intercept, which indicates autonomous expenditures, and slope, which indicates induced expenditures. The aggregate expenditures line used in Keynesian economics is derived by adding or stacking investment, government purchases, and net exports to the consumption line.

    Complete Entry | Visit the WEB*pedia


    [What's This?]

    Today, you are likely to spend a great deal of time searching for rummage sales wanting to buy either a large, stuffed kitty cat or a cross-cut paper shredder. Be on the lookout for attractive cable television service repair people.
    Your Complete Scope

    This isn't me! What am I?

    In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
    "Good plans shape good decisions. That's why good planning helps to make elusive dreams come true."

    -- Lester Bittle, Author

    International Customs Tariffs Bureau
    A PEDestrian's Guide
    Xtra Credit
    Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

    User Feedback

    | AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
    | About Us | Terms of Use | Privacy Statement |

    Thanks for visiting AmosWEB
    Copyright ©2000-2018 AmosWEB*LLC
    Send comments or questions to: WebMaster