Perfect Competition

4/16/98


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Table of Contents

Perfect Competition

This week we will investigate ...

This week we will investigate ...

Market Structure

Four Market Structures

Characteristics of PC

Why Is Competition Important?

It’s a matter of degree ...

The Exception: Price Taker Has No Monopoly Power

Industry D & S Determine the Firm’s Price

Perfectly Elastic D

Perfectly Elastic D?

Average Revenue (AR)

Marginal Revenue

MR = MC at Profit Max

Profit = TR - TC

Minimizing Short-Run Losses

Long-Run Equilibrium

How does a firm get to be a monopolist?

Barriers to Entry

More Barriers to Entry

What is it?

Who is CETI?

Why is CETI?

More Barriers to Entry

Another Barrier

Monopoly Profit Maximization

Author: Dean Schiffman