Back to Production, Cost, and the Perfect Competition Model

Lesson PreviewLesson 6 of 7 in this unit

3.6 Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market

Part of Production, Cost, and the Perfect Competition Model in AP® Microeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

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In a perfectly competitive market, many firms are producing identical products, and no single firm can influence the market price. However, there are many ways in which markets can change over time, and many reasons why firms would like to join or leave a market.

In this unit

7 lessons

  1. 3.1The Production FunctionPreview lesson
  2. 3.2Short-Run Production CostsPreview lesson
  3. 3.3Long-Run Production CostsPreview lesson
  4. 3.4Types of ProfitPreview lesson
  5. 3.5Profit MaximizationPreview lesson
  6. 3.6Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a MarketThis lesson
  7. 3.7Perfect CompetitionPreview lesson

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