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As a result, the high ever increasing standard of living enjoyed by U.S. citizens, their micro-lives will grow very slowly as we share the wealth  with people from around the world.  We may even have to give some back because of our energy dependence and recent decadence though increased production of energy and shale lessen this dependency. But we will still enjoy the highest standard of living in the industrialized world and technology will continue to make our macro-lives better, especially now that the Asians are contributing because of their investments in R&D.  And, always remember the best things in life will continue to be free and having enough money is a function of demand, not supply. 08/12/11

from economist.com 01/12/13

III. Purely competitive adjustment
  

IV. Economic analysis of pure competition
      A. Competition is eff icient.
           1. Price settles where long-run ATC is at its lowest point indicating goods are produced efficiently.
           2. P = MR = MC indicating that resources are allocated efficiently as the
               $'s spent by consumers (P) = the
               $'s received by producers (MR) = the
               $ cost of producers (MC) and
               economic profit is zero.
      B. Shortcomings
          1. Spillover costs (pollution) and benefits (education) aren't properly measured resulting in goods being 
              over and under produced.
              a. Government intervention was needed to lower automobile pollution.
              b. Governments supports education with grants and inexpensive loan problems to students and colleges.
          2. Monopoly power develops to negate Adam Smith's "invisible hand" of competition which is required 
              to assure that the purely competitive adjustment occurs.
          3. Eliminating economic profit makes it difficult for competitive firms to afford expensive R & D 
              and technology.
       C. Economics Interactive has an in depth narrative of pure competition.      
  V. Competitive supply
       1. A firm's MC curve is its short-run supply curve.
       2. Industry supply is the horizontal summation of the firm's supply curves.
       3. Economics: Long Run Supply - Cliffs Notes  
           analyzes the affect of long term supply on the efficiency of all industries.
  VI. For a conservative view of competition Read Pure and Perfect" Competition? 
        By What Standard? Part 5 in a Series of articles on Capitalism, Free-competition, 
        Antitrust, and Microsoft, By Richard M. Salsman
VII. Other theories of the competitive model from Wikipedia.
        A. Bertrand competition
        B. Cournot competition requires calculus.

U.S. Competitiveness Declines

Econintersect:  The U.S. slipped to seventh place in the ranking of economic competitiveness in the 2012 rankin published by the WEF (World Economic Forum).  Last year the U.S. ranked fifth.  The current result marked the fourth year of decline for the country that used to rule the competitiveness roost.

More from econintersect.com.

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The most striking fall is the United States, which has dropped in the rankings for four years in a row. It is now seventh. The rankings are based on criteria such as institutions, infrastructure, financial systems, flexible labour markets, economic stability, innovations and public services. Plotting the scores against GDP per person reveals an unsurprising correlation: competitiveness brings wealth, but rich countries can most easily afford to provide the conditions for it. They can squander competitiveness too.

from The wealth of nations