Chapter24

Chapter24 - ECONOMICS 101 CHAPTER 24 I Market Structures Monopoly Oligopoly Monopolistic Competition Pure Competition 1 One firm industry 2 No

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9/24/2007 E CONOMICS 101 C HAPTER 24 I) Market Structures Monopoly Oligopoly Monopolistic Competition Pure Competition 1. One firm industry 2. No close substitutes for product 3. Substantial and effective barriers to entry 4. Potential long-run profit 5. Substantial market power and control over prices 1. Few firms 2. Decision-making is mutually interdependent 3. Major barriers to entry 4. Potential long-run profit 5. Shared market power and control over price 1. Numerous potential buyers and sellers 2. Differentiated products 3. No entry or exit barriers 4. No profit in long run 5. Diffused market power and little control over price 1. Numerous potential buyers and sellers 2. Homogeneous products 3. No entry or exit barriers 4. No profit in long run 5. Diffused market power and no control over price Highly Concentrated Markets Less Concentration II) The World of Pure Competition pure competition requires - potential buyers and sellers are numerous and each is so small relative to the market that individual decisions do not noticeably affect market demand, supply, or price - firms in the industry produce a homogenous (standardized) good - barriers to entry or exit are insignificant in the long run; new firms are free to enter the industry if doing so appears profitable or exit if they anticipate loss
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This note was uploaded on 04/06/2010 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.

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Chapter24 - ECONOMICS 101 CHAPTER 24 I Market Structures Monopoly Oligopoly Monopolistic Competition Pure Competition 1 One firm industry 2 No

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