Profit Maximization & the Competitive Firm

Read the full Week 7 chapter covering price-taking firms, profit maximization (MR = MC), the profit rectangle, the shutdown decision (P > AVC), short-run supply curves, MR decomposition for market power, and long-run entry and exit to zero profit.

Download the slide decks and watch eleven asynchronous lecture videos covering price takers, profit maximization, short-run profit, shutdown cases, calculating marginal revenue, CMR examples, and short-run market supply.

Ten interactive tools: profit landscape (TR vs TC), profit rectangle anatomy, shutdown zone map, shutdown manager simulation, supply curve emergence, MR decomposition, three-panel demand shock, market supply builder, long-run entry/exit machine, and cost shock comparative statics.

Submit your graded problem set for Week 7 on Brightspace. Complete and submit before the deadline to receive full credit.

20 cards covering price takers, profit maximization (MR = MC), the profit rectangle, shutdown rule (P > AVC), supply curve = SMC above min(AVC), MR decomposition, market supply, long-run zero-profit equilibrium, and the meaning of economic profit.