PPTChapter8

PPTChapter8 - Managerial Economics Dr. Cliff Hawley BADM...

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Prof. Clifford B. Hawley Managerial Economics Dr. Cliff Hawley BADM 631 Chapter 8 Market Structures: Perfect Competition, Monopoly and Monopolistic Competition
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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 A firm in a Perfectly Competitive market Fir m q $ D f Marke t Q $ D S P e
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Prof. Clifford B. Hawley Market Supply = horizontal aggregation Firm A Firm B Firm C Market P Q P Q P Q P Q $5 0$55 $53 $58 $10 4 $10 8 $10 8 $10 20 $15 6 $15 14$15 12$15 32 $20 10$20 20$20 14$20 44
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Prof. Clifford B. Hawley A Competitive Firm in the Short Run It may make profits or losses in SR $ q ATC AVC MC Pe = MR q e Pe Profit = (Pe - ATC) × q
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Prof. Clifford B. Hawley Long Run: Entry Fir m q $ P e Marke t Q $ D S P e S* Pe* Pe* Entry
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Prof. Clifford B. 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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PPTChapter8 - Managerial Economics Dr. Cliff Hawley BADM...

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