The compilation of these Economics Notes makes students exam preparation simpler and organised.
The Theory of Firm Under Perfect Competition
In economics, we deal with some theoretical concepts that require us to make some unrealistic assumptions. One question that we need to ask is how much should the firm produce? And the assumption we make is that the firm only cares about profit maximization and that the market has perfect competition. Let us see how this is done.
- Perfect Competition and Revenue
- Supply Curve of a Firm
- Determinants of a Firm’s Supply Curve and Market Supply Curve
- Price Elasticity of Supply
- Profit Maximisation