ECO 201 Lecture Notes - Lecture 1: Opportunity Cost, Fixed Capital, Market Failure

43 views4 pages

Document Summary

In a monopolist market, a monopolist must sell the same good at different prices (price discrimination) Free entry and exit (perfect resource mobility) Perfect information: show graphically the long run profits for a firm in a perfectly competitive market. Why does it arrive at this point: for a firm in a perfectly competitive market, show a situation of economic profits. All market participants, both consumers and producers, are price takers. Neither consumption or production decisions of individuals affect the market price of the good. The additional revenue one receives from selling an additional unit of the good. Firm in perfect competition demand is perfectly elastic. Increasing: if we double inputs we more than double outputs, if we double outputs we less than double costs, per unit costs (average costs) fall. Decreasing: if we double inputs we less than double outputs, if we double outputs we more than double costs, per unit costs (average costs) raise.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related textbook solutions

Related Documents

Related Questions