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Chapter 8
Analysis of Perfectly
Competitive Markets
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T-60
Figure 8-1
Demand Curve Looks Horizontal
to a Perfect Competitor
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Firm’s Supply Curve Is Its Rising
Marginal Cost Curve
T-61
Figure 8-2
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Firm’s Supply Curve Travels Down the
MC Curve to the Shutdown Point
T-62
Figure 8-3
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Add All Firms’ Supply Curves
to Derive Market Supply
T-63
Figure 8-4
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Effect of Increase in Demand on Price
Varies in Different Time Periods
T-64
Figure 8-5
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Constant-Cost Case
T-65
Figure 8-7
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Increasing-Cost Case
T-66
Figure 8-8
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Factors with Fixed Supply
Earn Rent
T-67
Figure 8-9
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Backward-Bending Supply Curve
T-68
Figure 8-10
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At Competitive Equilibrium Point E,
the Marginal Costs and Utilities of Food
Are Exactly Balanced
T-69
Figure 8-11
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Competitive Market Integrates Consumers’
Demands and Producers’ Costs
T-70
Figure 8-12