Unit 6: Profit Maximization of a Purely Competitive Firm


What’s in This Chapter? In this chapter we discuss four types of industries, each with varying degrees of competition. A purely competitive industry is most competitive. A monopolistically competitive industry is very...

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Section 2: Revenue, Costs, and Profit

Total Revenue A firm’s total revenue is equal to the price of the product times the number of products sold. For example, if you own a company and you sell 100 magazines at $2 per magazine, then your total revenue is 100 x...

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Section 7: The Farming Industry

Characteristics of the Farming Industry The farming industry in the United States and other industrialized countries is very competitive. It is an example of an industry that is nearly purely competitive. Characteristics of the...

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Test Your Knowledge!

  Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already...

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