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Week Four Introduction

In Week Four, you will begin your study of the various forms of competition in neoclassical theory- which this week will be ‘pure’ or ‘perfect’ competition (the two are used interchangeably) in both the short and long runs.
It is essential to appreciate how the relevant assumptions behind pure competition in the short and long run factor into the main aspects of each theory. You will learn how a business and the market determines that quantity of output that will be produced in the short run as well as the long run.
Perfect Competition – Short Run and Long Run Costs (15:34 min) (youtube)
Handouts and Readings:
MBF Chapter 7
Side B: You will argue that the assumptions behind pure competition are not plausible and therefore pure competition likely exists in the real world. Please argue this point of view if your last name begins with the letters A-M.
The requirements and grading rubric will be the same from week to week; the requirements are listed below:
• Your initial post should be between 300 – 425 words. Please complete your initial post by 11:59pm ET on Wednesday.
• Your designated point of view should be clearly stated within the first couple of sentence of your initial post.
• You post should support your point of view with at least three pieces of evidence drawn from this week’s readings and/ or authoritative internet resources.
By 11:59pm ET on Sunday, you should have responded to two of your classmates. Please select two classmates who have argued the opposite point of view from your own. Responses to classmates should be detailed, specific, and of at least 200 words.

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