Chapter 4 lecture

Chapter 4 lecture - ECON 2106 Professor ByungCheol Kim...

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ECON 2106 Professor Byung- Cheol Kim
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Learning Objectives What a competitive market is. What determines the demand and the supply for a good in a competitive market. How supply and demand together set the price of a good and the quantity sold. How prices play in allocating scarce resources in market economies.
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A is a group of buyers and sellers of a particular good or service. Buyers determine . Sellers determine . A market is a market in which there are many buyers and sellers so that each has a negligible impact on the market price. That is, they act as . What Is a Market?
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What Is a Competitive Market? Conditions for a perfectly competitive market Buyers and Sellers are price- . Products are the same ( products) There is no barriers to . Information is complete. Monopoly One seller, and seller controls price (price- )
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6 U.S. Steel ; Standard Oil ; broken up in 1911. National Football League ; NCAA, Major League Baseball ; telecommunications giant broken up in 1982. Microsoft ; OS market De Beers ; diamond Monsanto ; commercial seed market. GameStop ; used games SAQ has a monopoly as it is the only chain of stores where alcohol can be sold in Quebec
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Other Market Structures? Oligopoly Few sellers Examples? Strategic interactions between firms Monopolistic Competition Many sellers, but slightly differentiated products Examples? Each seller may set price for its own product
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8 Concentration Ratios in Selected U.S. Industries Concentration Ratios in Selected U.S. Industries Industry Concentration ratio Video game consoles 100% Tennis balls
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Chapter 4 lecture - ECON 2106 Professor ByungCheol Kim...

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