Econ 1011 - Lecture 13

Econ 1011 Lecture 13

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Unformatted text preview: 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
...
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This note was uploaded on 09/30/2013 for the course ECON 1011 taught by Professor Irenefoster during the Fall '11 term at GWU.

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