This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Price Increase Decreases the consumers purchasing power, which if a normal good, causes the quantity demanded to decrease. if an inferior good, causes the quantity demanded to increase. Raises the opportunity cost of consuming the good, which causes the quantity of the good demanded to decrease. Characteristic Perfect Competition Monopolistic Competition Oligopoly Monopoly Number of Firms Many Many Few One Type of Product Identical Differentiated Identical or Differentiated Unique Ease of Entry High High Low Entry Blocked Examples of Industry-Wheat-Apples-Selling DVDs-Restarants-Manufacturing computers-Manufacturing automobiles-First Class Mail Delivery-Tap Water P > ATC, the firm makes a profit P = ATC, the firm breaks even (cost = revenue) P < ATC, the firm experiences losses...
View Full Document
- Fall '06