Lecture 7: Competitive Markets
A competitive market is when:
Firms are price takers. Individual rms are too small to aect
prices, as there are many identical rms operating in the
market at once.
Lecture 9 - Market Failure: Monopoly
Monopoly: Simply put a single rm supplies the whole market.
This occurs when:
Exclusive control of inputs
Economies of Scale (downward sloping LAC)
Lecture 6: Costs
Previously, we introduced the concept of a production function.
Recall that production function is a model of rm production
that species how inputs are combined to create output.
Now, we w
Consumer Theory Wrap-Up
So far weve seen:
How consumer preferences have been dened, and some
assumptions we commonly place on preferences.
Utility functions and how they represent preferences.
Indierence curves a