Output and Price: Perfect Competition

The Example: RIU

Perfect Competition (Short Run)

Cost Data

We will now return to our university, but now let's assume that it is part of a perfectly competitive market-that the tuition is set at $10,000 and that it does not depend upon the size of the university. For a brief description of the terms, you should once again return to the production cost unit.

Students

Fixed Costs

Variable Costs

Total Cost

Average Cost

Marginal Cost

6700

$10,000

$35,