Textbook Notes (368,552)
Canada (161,962)
Economics (923)
ECN 104 (387)
Chapter 7

Chapter 7

6 Pages
166 Views
Unlock Document

Department
Economics
Course
ECN 104
Professor
Halis Yildiz
Semester
Summer

Description
Chapter 7: Perfect Competition 7.1 Four Market Structures Perfect competition: a market structure in which a very large number of firms produce a standardized product; product identical to that of other producers, new firms can enter the industry very easy (Ex. Corn or cucumbers) Monopoly: a market structure in which one firm is the sole seller of a productservice; produces a unique product (Ex. Regional electrical power supplier) Monopolistic competition: a market structure in which a relatively large number of sellers produce differentiated products (Ex. Clothing, furniture, books) Non price competition: selling strategy in which one firm tries to distinguish productservice from all competing products (product differentiation) Oligopoly: a market structure in which a few large turns produce homogeneousdifferentiated products; firm affected by decisions of rivals and take those decisions into account when determining own price & output Imperfect competition: the market models of monopoly, monopolistic competition, and oligopoly considered as a group 7.2 Characteristics of Perfect Competition & the Firms Demand Curve Very large numbers: presence of large numbers of sellers offering products in large nationalinternational markets (Ex. Farm commodities market, stock market, foreign exchange market) Standardized product: produce identicalhomogeneous product; make no attempt to differentiate products and dont engage in forms of non price competition Price-takers: a firm in a purely competitive market that cannot change market price, only adjust to it Easy entity and exit: new firms can enter, existing firms can leave Average, Total, and Marginal Revenue Average revenue: total revenue from the scale of a product divided by the quantity of the product sold Total revenue: the total number of dollars received by a firm from the sale of a product www.notesolution.com
More Less

Related notes for ECN 104

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit