Chap 13

Chap 13 - the market demand and the market demand curve; 2....

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Chapter 13 Firms in perfectly competitively market 13.1 1. Monopolistic competition: A market structure with many firms selling differentiated products; 2. Perfectly competitive market: A market with many buyers and sellers selling homogenous goods, easy market entry and exit, and no firm able to affect the market price; 3. Oligopoly: A market structure with only a few sellers offering similar or identical products; 4. Monopoly: The single supplier of a product that has no close substitute; P.333 13.2 1. Price takers: A perfectly competitive firm that takes the price it is given by the intersection of
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Unformatted text preview: the market demand and the market demand curve; 2. The individual sellers can change their outputs, and it will not alter the market price; 13.3 1. Total revenue: The product price times the quantity sold; 2. Average revenue: Total revenue divided by the number of unit sold; 3. Marginal revenue: The increase in total revenue resulting from a one-unit increase in sales; 4. In perfect competition P = MR = AR ; 5. Profit-maximizing level of output: A firm should always produce at the output where MR = MC; P. 338 13.4...
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This note was uploaded on 02/10/2011 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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Chap 13 - the market demand and the market demand curve; 2....

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