Chapter 8

Competitive Firms and Markets

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Figure 8.1 Residual Demand Curve

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Figure 8.2 Maximizing Profit

Figure 8.3 How a Competitive Firm Maximizes Profit

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Page 240 Solved Problem 8.1

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Figure 8.4 The Short-Run Shutdown Decision

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Figure 8.5 How the Profit-Maximizing Quantity Varies with Price

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Figure 8.6 Effect of an Increase in the Cost of Materials on the Vegetable Oil Supply Curve

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Figure 8.7 Short-Run Market Supply with Five Identical Lime Firms

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Figure 8.8 Short-Run Market Supply with Two Different Lime Firms

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Figure 8.9 Short-Run Competitive Equilibrium in the Lime Market

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Figure 8.10 Short-Run Effect of a Specific Tax in the Lime Market

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Figure 8.11 The Short-Run and Long-Run Supply Curves

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Table 8.1 Entry and Exit Rates in Selected U.S. Industries,1972–1982

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Figure 8.12a Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

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Figure 8.12 Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

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Figure 8.12b Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

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Application (Page 257) Upward-Sloping Long-Run Supply Curve for Cotton

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Figure 8.13 Long-Run Market Supply in an Increasing-Cost Market

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Figure 8.14 Long-Run Market Supply in a Decreasing-Cost Market

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Figure 8.15 The Short-Run and Long-Run Equilibria for Vegetable Oil

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Page 263 Solved Problem 8.3

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Figure 8.16 Rent