文档介绍：petition
Chapter 17
The Four Types of Market Structure
Monopoly
Oligopoly
petition
petition
Tap water
Cable TV
Tennis balls
Crude oil
Novels
Movies
Wheat
Milk
Number of Firms?
Type of Products?
Many firms
One firm
Few firms
Differentiated products
Identical products
Types of petitive Markets
petition
Many firms selling products that are similar but not identical.
Oligopoly
Only a few sellers, each offering a similar or identical product to the others.
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Markets that have some features petition and some features of monopoly.
Attributes of petition
Many sellers
Product differentiation
Free entry and exit
Many Sellers
There are many peting for the same group of customers.
Product examples include books, CDs, movies, computer games, restaurants, piano lessons, cookies, furniture, etc.
Product Differentiation
Each firm produces a product that is at least slightly different from those of other firms.
Rather than being a price taker, each firm faces a downward-sloping demand curve.
Free Entry or Exit
Firms can enter or exit the market without restriction.
The number of firms in the market adjusts until economic profits are zero.
petitors in the Short Run...
(a) Firm Makes a Profit
Quantity
0
Price
Demand
MR
ATC
Profit
MC
Profit-
maximizing quantity
Price
Average
total cost
petitors in the Short Run...
Quantity
0
Price
Demand
MR
Losses
(b) Firm Makes Losses
MC
ATC
Average
total cost
Loss- minimizing quantity
Price