微观经济学精华讲义英文版 (4)

Market Supply with a Fixed Number of Firms

(a) Individual Firm Supply

PriceSMC$2.001.00Q (firm)$2.001.00Q (market)PriceSupply(b) Market Supply

01002000100,000200,000汪艳

经济管理学院

双语教学示范课程

252013-7-23

?Producer surplus

?…is the amount a seller actually is paid for a good minus the amount the seller is willing to be paid.?It measures thebenefit to sellers participating in a market.

汪艳

经济管理学院

双语教学示范课程

262013-7-23

Producer Surplus at Price P1

Price

SupplyPB1

ProducerCsurplusP2A汪艳

0

Q2

Q1

Quantity经济管理学院

双语教学示范课程

272013-7-23

The Firm’s Long-RunDecision to Exit or Entera Market

In the long run, the firm exits if the revenue it would get from producing is less than its total cost.

?Exit ifTR < TC

?Exit if(TR/Q) < (LTC/Q)?Exit ifAR < LAC

?P < LAC

汪艳

经济管理学院

双语教学示范课程

282013-7-23