S e at that point normal profits would be restored

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S e . At that point, normal profits would be restored and firms would cease leaving the industry. . What other reasons can you think of why perfect competition is so rare?
Why does the market for fresh vegetables approximate to perfect competition, whereas that for aircraft does not?
What advantages might a large established retailer have over a new e-commerce rival to suggest that the new e-commerce business is unlikely to have it all its own way?
Chapter 6 As an illustration of the difficulty in identifying monopolies, try to decide which of the following are monopolies: British Telecom; your local evening newspaper; the village post office; a rival company; Interflora; the London Underground; ice creams in the cinema; Guinness; food sold in a university refectory; the board game ‘Monopoly’.
Try this brain teaser. A monopoly would be expected to face an inelastic demand. And yet, if it produces where MR = MC, MR must be positive, demand must therefore be elastic. Therefore the monopolist must face an elastic demand!

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