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ECON 101 2Midtermreview

A firms production function exhibits diminishing

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Unformatted text preview: if the firm goes bankrupt. The profit of corporations is taxed twice—once as a corporate tax on firm profits, and then again as income taxes paid by stockholders receiving their after- tax profits distributed as dividends. Economists identify four market types: 1. Perfect competition 2. Monopolistic competition 3. Oligopoly 4. Monopoly Perfect competition is a market structure with §༊ Many firms §༊ §༊ §༊ §༊ Each sells an identical product Many buyers No restrictions on entry of new firms to the industry Both firms and buyers are all well informed about the prices and products of all firms in the industry. Monopolistic competition is a market structure with §༊ Many firms §༊ Each firm produces similar but slightly different products—called product different...
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