Exam 2 Review

Exam 2 Review - Exam 2 Review Crepared by: Dean Flanders P...

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Click to edit Master subtitle style 4/9/11 Prepared by: Dean Flanders Exam 2 Review
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4/9/11 Market Structure n Suppliers have close substitutes n No Differentiation n Generic Assets n No Economies of Scale (Price Taker) n Varying degree of substitutes n Or weaker substitutes n Specialized Assets n Economies of Scale (Price Searcher) N/A n No Substitutes n Extreme economies of scale n Customer can be physically  connected to supplier (Monopoly) CONDITIONS of DEMAND Demand Curve is Horizontal Demand Curve is Downward Sloping OPEN CLOSED CONDITIONS of ENTRY
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4/9/11 When does a firm become a price taker? Under perfect competition Suppliers have close substitutes No Differentiation Generic Assets No Economies of Scale Fish Society Competitive Boat Making Read through Prof. Crawford’s Answers Price Taker
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Price Taker S 0 D 0 S 1 D 1 Industry Representativ e Firm P=AR=M R=Df P 0 P 1 0 1 2 Q 0 AE C A V C M C 0 Qf 0 Qf 1 Gross Contrib. Margin or Quasi-
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Exam 2 Review - Exam 2 Review Crepared by: Dean Flanders P...

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