Perfect Competition
The IB Economics syllabus requires you to understand the following:
• Assumptions of the model
• Demand curve facing the industry and the firm in perfect competition
• Profit-maximizing level of output and price in the short-run and long-run
• The possibility of abnormal profits/losses in the short-run and normal profits in the long-run
• Shut-down price, break-even price
• Definitions of allocative and productive (technical) efficiency
• Efficiency in perfect competition
This selection of resources is designed to compliment your learning of this topic, with a focus on video clips and interactive resources.
Via: http://www.reffonomics.com
This is a very good interactive diagram to try out different scenarios buy adjusting the D=AR=MR line and/or the quantity produced.
Excellent interactive exploration of the relevant theory with multiple choice quiz questions to test your understanding(click on the image)
Via http://openmultimedia.ie.edu created by Javier Carrillo
mjmfoodie on Perfect Competition:
pajholden on equilibrium in perfect competition (click here to view)
richardmckenzie offers two detailed videos:
ACDCLeadership does his usual 60 seconds take on things:
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