Ch. 10 & 11 Outline (Repaired)

Ch. 10 & 11 Outline (Repaired) - ECON 1B Chapters 10 & 11...

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ECON 1B Chapters 10 & 11– Price-Searcher Markets with Low and High Entry Barriers A. Market Structure Continuum: Perfect Monopolistic Oligopoly/ Perfect Competition Competition Duopoly Monopoly Most real world markets B. Monopoly 1. Recall competitive equilibrium: a. 1) 2) b. 2. Monopoly, in contrast, a. b. c. 3. To understand this we will build a model of Perfect Monopoly using the following analysis: a. b. c. d. C. Characteristics of mono 1. A perfect monopoly – there are no substitutes for the firm’s product a. b. c.
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ECON 1B—Chapter10-11—Price Searchers—p.2 2. Assumptions a. ` b. 1) competitive model Market demand Firm demand Horizontal summation of No individual firm All buyer’s demand curves can effect the market Price – firms D is lat 2) monopoly model D = P = AR not = to MR < AR because AR is falling Firm and industry demand c. The monopoly firm is a price maker (price searcher) 1) 2)
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ECON 1B—Chapter10-11—Price Searchers—p.3 d. Barriers to entry – prevention of the introduction of
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This note was uploaded on 09/08/2010 for the course ECON 1B at San Jose State.

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Ch. 10 & 11 Outline (Repaired) - ECON 1B Chapters 10 & 11...

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