Market structure describes the competitive environment in
the market for any good or service
market structure is typically characterized on the basis of four
the number and size of buyers
The ability of goods and services to satisfy consumer
wants is the basis for consumer demand.
Satisfaction tied to consumption.
The utility derived from consumption is intangible.
A utility functi
Demand and Supply
Cornell Comp. and Penn Comp. supply generic drugs to treat a wide variety of illnesses.
A major product for each company is a generic equivalent of an antibiotic used to treat
postoperative infections. Proprietory cost and out
A production function specifies the maximum output
that can be produced for a certain amount of input.
any improvement in technology results in a new
the general form of a production function
how the allocation of economic resources affects the
well-being of consumers and producers
Equilibrium prices and quantities that create an exact
balance between supply and demand in perfectly