1. Chapter 8 Competitive Firms and Markets

2. © 2004 Pearson Addison-Wesley. All rights reserved8-2 Figure 8.1 Residual Demand Curve

3. © 2004 Pearson Addison-Wesley. All rights reserved8-3 Figure 8.2 Maximizing Profit

4. Figure 8.3 How a Competitive Firm Maximizes Profit

5. © 2004 Pearson Addison-Wesley. All rights reserved8-5 Page 240 Solved Problem 8.1

6. © 2004 Pearson Addison-Wesley. All rights reserved8-6 Figure 8.4 The Short-Run Shutdown Decision

7. © 2004 Pearson Addison-Wesley. All rights reserved8-7 Figure 8.5 How the Profit-Maximizing Quantity Varies with Price

8. © 2004 Pearson Addison-Wesley. All rights reserved8-8 Figure 8.6 Effect of an Increase in the Cost of Materials on the Vegetable Oil Supply Curve

9. © 2004 Pearson Addison-Wesley. All rights reserved8-9 Figure 8.7 Short-Run Market Supply with Five Identical Lime Firms

10. © 2004 Pearson Addison-Wesley. All rights reserved8-10 Figure 8.8 Short-Run Market Supply with Two Different Lime Firms

11. © 2004 Pearson Addison-Wesley. All rights reserved8-11 Figure 8.9 Short-Run Competitive Equilibrium in the Lime Market

12. © 2004 Pearson Addison-Wesley. All rights reserved8-12 Figure 8.10 Short-Run Effect of a Specific Tax in the Lime Market

13. © 2004 Pearson Addison-Wesley. All rights reserved8-13 Figure 8.11 The Short-Run and Long-Run Supply Curves

14. © 2004 Pearson Addison-Wesley. All rights reserved8-14 Table 8.1 Entry and Exit Rates in Selected U.S. Industries,1972–1982

15. © 2004 Pearson Addison-Wesley. All rights reserved8-15 Figure 8.12a Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

16. © 2004 Pearson Addison-Wesley. All rights reserved8-16 Figure 8.12 Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

17. © 2004 Pearson Addison-Wesley. All rights reserved8-17 Figure 8.12b Long-Run Firm and Market Supply with Identical Vegetable Oil Firms

18. © 2004 Pearson Addison-Wesley. All rights reserved8-18 Application (Page 257) Upward-Sloping Long-Run Supply Curve for Cotton

19. © 2004 Pearson Addison-Wesley. All rights reserved8-19 Figure 8.13 Long-Run Market Supply in an Increasing-Cost Market

20. © 2004 Pearson Addison-Wesley. All rights reserved8-20 Figure 8.14 Long-Run Market Supply in a Decreasing-Cost Market

21. © 2004 Pearson Addison-Wesley. All rights reserved8-21 Figure 8.15 The Short-Run and Long-Run Equilibria for Vegetable Oil

22. © 2004 Pearson Addison-Wesley. All rights reserved8-22 Page 263 Solved Problem 8.3

23. © 2004 Pearson Addison-Wesley. All rights reserved8-23 Figure 8.16 Rent