Monopolistic Competition

Slides:



Advertisements
Similar presentations
The firm in the short run 1. Alternative market structures 1. Alternative market structures 2. Assumptions of perfect competition 2. Assumptions of perfect.
Advertisements

Monopolistic Competition. Market Structure Product Differentiation Product Differentiation Few Many Number of Firm Differentiation Product Differentiation.
Monopolistic Competition: Outline What is monopolistic competition? Characteristics of monopolistic competition Equilibrium in SR and the LR Implications.
Monopolistic competition Is Starbuck’s coffee really different from any other?
Chapter 23 Monopolistic Competition and Oligopoly
Monopoly. Monopoly: Why? u Natural monopoly (increasing returns to scale), e.g. (parts of) utility companies? u Artificial monopoly –a patent; e.g. a.
Monopolistic Competiton. Assumptions Many sellers and many buyers Slightly different products Easy entry and exit (low barriers)
1 Market Structures MonopolyCompetitionMonopolistic Competition Oligopoly.
November 24, Review HW: Activities 3-13, 3-14, Lesson 3-9: Monopolistic Competition 3.HW: Activity No Current Event this week! 5.Check.
 relatively small economies of scale  many firms  product differentiation  close but not perfect substitutes  product characteristics, location, services.
Market Structures: Monopolistic Competition. Imperfect Competition The spectrum of competition: Perfect Comp  Monopoly Monop. Comp.--
Market Dynamics and Pricing Entry and Exit in Perfect Competition and Monopoly; Monopsony; Price Discrimination; Monopolistic Competition.
Structures Market Structures Perfect Competition.
Chapter 10 Monopoly. Chapter 102 Review of Perfect Competition P = LMC = LRAC Normal profits or zero economic profits in the long run Large number of.
Monopolistic Competition Long Run Equilibrium Chapter 17 Pages
Persaingan Monopolistik versus Persaingan Sempurna.
Monopolistic Competition 1.Many firms (small market share each). 2.Acting independently (no collusion). 3.Products are differentiated. a. Actual differences.
Market Structure Dr.Deepakshi Gupta
Lecture 10 Market Structure. To determine structure of any particular market, we begin by asking 1. How many buyers and sellers are there in the market?
Monopolistic Competition. Learning Objectives: What is Monopolistic Competition? How is it different from Perfect Competition or Monopoly? How does a.
Monopolistic Competition and Oligopoly
PRICING & OUTPUT DECISION
Chapter 8 Market Power: Monopoly and Monopsony. What is Monopsony? Mono = means “One” + Psony = means “Buyer” = One Buyer or One Consumer.
# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Monopolistic Competition and Oligopoly 9.
OUTLINE Perfect Competition Monopoly Monopolistic Competition
Monopolistic Competition. Monopolistic Competition is based upon a number of assumptions Many buyers and many sellers No barriers to entry or exit Differentiated.
AP Economics Mr. Bernstein Module 67: Introduction to Monopolistic Competition December 2015.
AP Economics Mr. Bernstein Module 61: Introduction to Monopoly November 2015.
Pure Competition in the Short Run 10 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Perfect Competition Principles of Microeconomics Boris Nikolaev.
Monopolistic Competition Lesson aims: To explain the main assumptions of a monopolistically competitive market To understand the downward sloping and elastic.
Perfect Competition Many buyers & sellers (no individual has mkt power) Homogeneous product – no branding or differentiation Perfect information – consumers.
INTRODUCTION TO MICROECONOMICS Topic 8 Monopolistic Competition These slides are copyright © 2010 by Tavis Barr. This work is licensed under a Creative.
KRUGMAN'S MICROECONOMICS for AP* Introduction to Monopolistic Competition Margaret Ray and David Anderson Micro: Econ: Module.
© 2007 Thomson South-Western. Monopolistic Competition Characteristics: –Many sellers –Product differentiation –Free entry and exit –In the long run,
Monopolistic Competition A market with many buyers and sellers, with low barriers to entry and differentiated products Each seller creates a certain uniqueness.
Perfect Competition Assumptions of the model
What determines the behaviour of firms?
PRICE ON OUTPUT DETERMIANTION UNDER MONNOPOLOGY
Forms of Markets.
Warm-Up Draw a correctly-labeled graph showing a:
Chapter 9 Imperfect Competition.
Chapter 5: Competition and Monopoly: Virtues and Vices
Monopolistic Competition
Mr. Bernstein Module 61: Introduction to Monopoly November 2017
Introduction to Monopolistic Competition
Monopolistic Competition
Monopolistic Competition
1 PowerPoint Slides Prepared by Robert F. Brooker, Ph.D. Slide 1.
BEC 30325: MANAGERIAL ECONOMICS
© 2007 Thomson South-Western
Unit 4: Imperfect Competition
Chapter 8 Market Structure: Perfect Competition, Monopoly , Oligopoly and Monopolistic Competition PowerPoint Slides by Robert F. Brooker Harcourt, Inc.
Unit 4: Imperfect Competition
Pure Competition.
Perfect Competition Large no of buyers & sellers Homogenous products
Perfect Competition and Monopolistic Competition
Monopolistic Competition
Market Structure Wrap-Up
BEC 30325: MANAGERIAL ECONOMICS
Monopolistic Competition
Monopolistic Competition
BEC 30325: MANAGERIAL ECONOMICS
price quantity Total revenue Marginal revenue Total Cost profit $20 1
Less competition Perfect Competition Monopolistic Competition
Monopolistic Competition
BEC 30325: MANAGERIAL ECONOMICS
Unit 4: Imperfect Competition
Imperfect Competition
UNIT-2 MONOPOLY KISHAN BADIYANI.
Presentation transcript:

Monopolistic Competition

Assumptions Many buyers and a “large-ish” number of sellers Sellers are price-makers (i.e. have market power) to some extent in the short run Differentiated products Freedom of entry and exit

Short Run Equilibrium: Firm MC P q Demand MR

Short Run Equilibrium: Firm MC Output: MC = MR P qmc q Demand MR

Short Run Equilibrium: Firm MC Price is Pmc P Pmc qmc q Demand MR

Short Run Equilibrium: Firm MC Note: Pmc > AC at qmc Excess profits exist (in the short run) P AC Pmc q qmc Demand MR

Long Run Equilibrium: Firm MC Note: Pmc = AC at Ymc P There are no excess economic profits in the long run Pmc AC qmc q Demand MR

Monopolistic Competition v. Perfect Competition v. Monopoly Homework

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.