{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ 1011 - Lecture 13

Econ 1011 - Lecture 13 - :Part1 R&TChapter8&11.3 1...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lectures 13 – Perfectly Competitive Markets: Part 1 R&T Chapter 8 & 11.3 1) Quick Review (Models so Far) a. Map Model … to show how models work b. Pure Exchange model (apples and oranges) c. Ricardian model with production and trade (Comparative advantage) d. Demand model (many consumers; one good; determinants) e. Production Model (Cost curves) f. Monopoly (one firm; many consumers) g. Duopoly (two firms; many consumers) h. Perfect competition (many firms; many consumers) 2) Market Structure a. Firms behave differently, and profit maximization works differently, based on the extent of competition with other firms selling substitutable products. i. Only one firm – Monopoly ii. Several firms – Oligopoly iii. Many, many firms – Perfect Competition 3) Assumptions in Perfect Competition (PC) a. Many, many profit maximizing firms b. each firm producing the same product. (the good is homogenous or perfectly substitutable) c. Many many potential buyers of the product d. Perfect info – knows the price, knows its cost curves, etc.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern