Friday, October 7, 2011

Pure Competition


Students shall be able to

  1. define pure (or perfect) competition,

  2. define pure monopoly,

  3. define oligopoly,

  4. define monopolistic competition,

  5. identify characteristics of pure competition,

  6. explain why the firm in pure competition faces a perfectly elastic demand curve,

  7. explain how a firm in pure competition maximizes profit in the short run,

  8. identify the short-run shut down position of a firm in pure competition,

  9. explain the relationship between marginal cost and short-run supply,

  10. explain the difference between market demand and the demand faced by a firm in pure competition,

  11. explain (and identify graphically) the movement from short-run to long-run equilibrium,

  12. explain why economic profits of the firm in pure competition are zero in the long-run (normal profit position),

  13. define productive efficiency,

  14. define allocative efficiency, and

  15. explain why pure competition results in both productive and allocative efficiency in the long-run.


  1. Chapter 23 quiz.


  1. Take the chapter 23 quiz.



Monitor and adjust as necessary. Grade the quiz.