AutoRecovery save of Test 3 notes

AutoRecovery save of Test 3 notes - Profit Maximization...

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Profit Maximization 09/07/2007 12:14:00 Profit = total rev – total cost (TR – TC) 1. Perfect Competition – base your decision on price o bring your own and sell it for $2 a bottle o potentially bigger revenue, must factor in costs o choosing between $4/lb shrimp and $5/lb shrimp 2. Monopolistic Competition – base your decision on preference, THEN price o choosing between $2 Old Milwalkee beer and $4 Corona 3. Oligopoly – competitors get together and set prices at a higher equal level o substantially above the competitive price o gas prices in Marietta vs. gas prices in Buckhead 4. Monopoly o braves venue have monopoly on beer sales since you are not allowed  to bring your own o can charge $8 (outrageous prices) Characteristics of Perfect Competition large # of sellers of the product o one seller(monopoly)  has power in the market
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