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Презентация на тему Monopolies, markets and competition

A market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. What is a 'Market'
Monopolies, markets and competition A market is a medium that allows buyers and sellers of a specific good or service Market structure is the focus real-world competition.Market structure refers to the physical Market structure involves the number of firms in the market and the Monopolistic competition is a market structure in which there are many firms Characteristics of Monopolistic Competition Three distinguishing characteristics:Independence because of so many firms, PMCQ Single Monoply Firm Short Run and Long Run in Monopolistic Competition Short-Run, Output, Price, and Profit of a Monopolistic CompetitorLike a monopoly, At A Monopolistically  Competitive Firm: Above Normal Profit A Monopolistically  Competitive Firm: Economic Loss
Слайды презентации

Слайд 2 A market is a medium that allows buyers and sellers of a

A market is a medium that allows buyers and sellers of a specific good or

specific good or service to interact in order to

facilitate an exchange. 

What is a 'Market'


Слайд 3 Market structure is the focus real-world competition.
Market structure

Market structure is the focus real-world competition.Market structure refers to the

refers to the physical characteristics of the market within

which firms interact.
How do firms and people buy and sell?

Market structure


Слайд 4 Market structure involves the number of firms in

Market structure involves the number of firms in the market and

the market and the barriers to entry.
Monopolistic competition lie

between these two extremes.

Market structure


Слайд 5 Monopolistic competition is a market structure in which

Monopolistic competition is a market structure in which there are many

there are many firms selling differentiated products.

There are few

barriers to entry.

Monopolistic competition


Слайд 6 Characteristics of Monopolistic Competition
Three distinguishing characteristics:
Independence because

Characteristics of Monopolistic Competition Three distinguishing characteristics:Independence because of so many

of so many firms, each one acts independently. No

firm takes into account the actions of other firms.

Lack of Collusion with so many firms it’s hard to get together and collude

Many sellers that do not take into account rivals’ reactions – each firm has a small share of the market


Слайд 7 P
MC
Q
Single Monoply Firm
Short Run and Long

PMCQ Single Monoply Firm Short Run and Long Run in Monopolistic

Run in Monopolistic Competition
QM
Pm

A
MCM
P
ATC
Q
QM
A


MC


ATC
P = ATC
Profit
Single

Monopolistically Competitive Firm

Слайд 8 Short-Run, Output, Price, and Profit of a Monopolistic

Short-Run, Output, Price, and Profit of a Monopolistic CompetitorLike a monopoly,

Competitor

Like a monopoly,
At profit maximizing output, marginal cost

will be less than price

Marginal revenue is below price

Like a perfect competitor, zero economic profits exist in the long run

The monopolistic competitive firm has some monopoly power so the firm faces a downward sloping demand curve


Слайд 9 A Monopolistically Competitive Firm: Above Normal Profit

A Monopolistically Competitive Firm: Above Normal Profit

Слайд 10 A Monopolistically Competitive Firm: Economic Loss

A Monopolistically Competitive Firm: Economic Loss

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