Competition causes firms to be efficient 151 perfect

Info icon This preview shows page 16. Sign up to view the full content.

View Full Document Right Arrow Icon
Competition causes firms to be efficient 151) Perfect Competition markets have: (a.i.1) The most substitute products available (a.i.2) The most elasticity (a.i.3) Largest number of sellers (a.i.4) Firms that are price- takers (a.i.5) THE GREATEST OUTPUT!! 152) Barriers affect different market types: a.i) Perfect Competition – no barriers to entry or exit a.ii) Monopolistic Competition – weak barriers may exist a.iii) Oligopoly – large barriers prevent most entry a.iv) Monopoly – complete barriers prevent all entry 153) Nash Equilibrium – is a strategy that requires each firm to base its decisions on the strategies of other firms a) Seeks a point where each firm gains the same amount of utility
Image of page 16
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