longeq - Notes Long Run Equilibrium Pure Competition Entry...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Notes: Long Run Equilibrium Pure Competition $ MC Entry and exist occurs until firms break-even ATC* (zero economic profit) PC P=AR=MR=D FIRM P* = MR = MC = min ATC (MC is increasing) Pure Monopoly Q Extremely high barriers 0 Q FIRM to entry prevent entry of other firms. Thus, $ monopolist can earn persistent positive econ. profit in long-run. P ATC* ATC P > MR D FIRM = D MARKET) P > ATC MR (MC is increasing) 0 Q FIRM Oligopoly Barriers to entry prevents most entry, thus an $ oligopolist can earn a positive econ. profit
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.

Ask a homework question - tutors are online