ECON 202 Lecture Notes - Lecture 16: Universal Rule, Takers, Average Cost
68 views6 pages
29 Mar 2017
School
Department
Course
Professor
Document Summary
They need to know what will happen to their profits when they decide on different levels of output and/or pricing. Pricing affects a firm"s individual demand so they need to know what their firm-specific demand looks like and whether it is relatively elastic or inelastic. The # of competitors affect the level of substitutability available to consumers. (demand is elastic) cost structures can greatly affect the # of competitors in certain industries. A firm considers it"s own individual demand curve (means they"ll have implications to their product) Monopolistically competitive many firms, products are differentiated: what you see in general. Each market structure will be applicable to different real-world markets and will give us insight into how firms in certain types of markets behave. Perfectly competitive market there are many buyers/sellers, all firms sell identical products, and there are no barriers to new firms entering the market. The first and second conditions imply that competitive.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers