... exitsP1£OutputSAVCSMCQ1SATCP3ACQ39.2Perfect competitionmany buyers and sellers–so no individual believes that their own action can affect market pricefirms take price as given–so ... P3Q3.P3Q3Chapter 9Perfect competition and monopoly:The limiting cases of market structureDavid Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000Power ... Output£DSRSSQ0P0DD'D'in the short run the newequilibrium is P1Q1 – adjustment is throughexpansion of individualfirms along their SMCs.Q1P19.5The supply curve under perfect competition (3)So the...