midterm2 study - Perfect competition Price determined by...

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Perfect competition Price determined by industry. Firms cant change supply – no impact Opp at min of avc (making loss in short run) Min of atc (breaking even in long run) If below avc (shut down in short run) Products the same Free entry Supply curve in short run is mc>avc Long run mc>atc Monopoly Firm and industry same graph Q determined by mr=mc Price determined by where ^ hits demand curve Varies to entry If perfectly price discriminating, no dead weight loss (never happens)
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Unformatted text preview: The price/quantity point is the supply “curve” Monopolistic competition Identical price rule as monopoly Free entry Better if natural monopolies control If MR>MC, want to produce another unit Total of producer surplus is SMALLER under monopoly Consumer surplus DOES NOT EXIST is perfectly price discriminating monopoly...
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