PPTChapter7

PPTChapter7 - Managerial Economics Professor Cliff Hawley BADM 631 The Nature of Industry(Chapter 7 Prof Clifford B Hawley

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Prof. Clifford B. Hawley Managerial Economics Professor Cliff Hawley BADM 631 The Nature of Industry (Chapter 7)
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Prof. Clifford B. Hawley Structure-Conduct-Performance Paradigm Market Structure: # of firms, nature of product or service firm size, technology, ease of entry and exit demand conditions
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Prof. Clifford B. Hawley Conduct and Performance Conduct: Performance Pricing Power Economic Importance of Profits Advertising
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Prof. Clifford B. Hawley Perfect Monopoly Oligopoly Monopolistic Competition Competition # of sellers many one few many # of buyers many many many many product homogeneous n/a either differentiated barriers to entry? no yes yes no Characteristics of 4 Market Structures
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Prof. Clifford B. Hawley Indicators of Pricing Power: 1. Market Concentration: measured by 4-firm, 8 firm conc. ratios, or the HHI. 2. Lerner Index: L = (P-MC)/P 3. Rothchild Index: R = ET/EF
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Hawley
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This note was uploaded on 10/16/2010 for the course B&E BADM 631 taught by Professor Hawley during the Spring '10 term at WVU.

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PPTChapter7 - Managerial Economics Professor Cliff Hawley BADM 631 The Nature of Industry(Chapter 7 Prof Clifford B Hawley

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