Ch. 11 - Perfect CompetitionWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Microeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Floors
Ch. 6 - Introduction to Taxes and Subsidies
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - The Costs of Production
Ch. 11 - Perfect Competition
Ch. 12 - Monopoly
Ch. 13 - Monopolistic Competition
Ch. 14 - Oligopoly
Ch. 15 - Markets for the Factors of Production
Ch. 16 - Income Inequality and Poverty
Ch. 17 - Asymmetric Information, Voting, and Public Choice
Ch. 18 - Consumer Choice and Behavioral Economics
We shutdown the business if producing units will cause us to lose more money.

Concept #1: Short Run Shutdown Decision

Concept #2: Short Run Shutdown Decision (continued)

Concept #3: Short Run Shutdown Decision on the Graph

Practice: The price for a pair of edible underpants is $50. In the short-run, the firm should: 

Practice: The price for a pair of edible underpants is $50. In the short-run, the firm’s total revenue is: 

Practice: The price for a pair of edible underpants is $50. In the short-run, the firm’s profit (or loss) is: 

Practice: The firm shuts down at any price below: 

Practice: What is the least amount of output, assuming the firm does not shut down? 

Practice: If the price falls from P4 to P3, then output will decrease by