1. Chapter 11 Managerial Decisions in Competitive Markets

4. Demand for a Competitive Price-Taking Firm (Figure 11.2) 11- Quantity Price (dollars) Quantity Price (dollars) Panel A – Market Panel B – Demand curve facing a price-taker 0 0 D S P 0 Q 0 P 0 D = MR

8. Profit Maximization: P = $36 (Figure 11.3) 11- Total cost = $19 x 600 = $11,400 Total revenue =$36 x 600 = $21,600 Profit = $21,600 - $11,400 = $10,200

9. Short-Run Loss Minimization: P = $10.50 (Figure 11.5) 11- Total revenue = $10.50 x 300 = $3,150 Profit = $3,150 - $5,100 = -$1,950 Total cost = $17 x 300 = $5,100

13. Short-Run Firm & Industry Supply (Figure 11.6) 11-

14. Long-Run Profit-Maximizing Equilibrium (Figure 11.7) 11- Profit = ($17 - $12) x 240 = $1,200

16. Long-Run Competitive Equilibrium (Figure 11.8) 11-

19. Long-Run Industry Supply for a Constant Cost Industry (Figure 11.9) 11-

20. Long-Run Industry Supply for an Increasing Cost Industry (Figure 11.10) 11- Firm’s output

24. Profit-Maximizing Labor Usage (Figure 11.12) 11-