mkt_structure_comp

mkt_structure_comp - Market demand Sellers demand Marginal...

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1 ECO 2023: Principles of Microeconomics Dr. McCaleb COMPARISON OF PERFECT COMPETITION, MONOPOLISTIC COMPETITION, AND MONOPOLY Perfect Competition Monopolistic Competition Monopoly Definition Many buyers and sellers Homogeneous product (perfect substitutes) No barriers to entry/exit Many buyers and sellers Differentiated product (close but not perfect substitutes) No barriers to entry/exit Single seller No close substitutes Barriers to entry Demand and marginal revenue
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Unformatted text preview: Market demand Sellers demand Marginal revenue Negatively-sloped Perfectly elastic (horizontal) Perfectly elastic or horizontal (MR=P) Negatively-sloped Negatively-sloped Negatively-sloped and below demand (MR<P) Negatively-sloped Negatively-sloped Negatively-sloped and below demand (MR<P) Equilibrium Short run profits Long run profits Positive, zero, or negative Zero Positive, zero, or negative Zero Positive, zero, or negative Positive or zero...
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