Textbook Notes (367,823)
Canada (161,434)
Economics (331)
ECON 1010 (72)
Chapter 4

ECON 1010 Chapter 4: Topics 20

3 Pages
Unlock Document

ECON 1010
Laura K.Brown

OS98 ECON101 0 In terms of total surplus: a quota and tariff can both lead to the same prices and quantities and generate a deadweight loss of area I + K (if they are set to mimic each other). Whats different is what goes on behind the policies. 3.IMPERFECTLY COMPETITIVE MARKETS MARKET POWER: MONOPOLY Imperfectly competitive markets are those who fail to meet at least one requirement of a perfectly competitive market. Pricetaking firms can sell as much as they want at the current market price. However, if they increase the price, they lose all their sales. This means that the demand curve for the individual firm is horizontal (perfectly elastic). Firms with market power are said to be pricemakers (pricesetters) in that they have the ability to set their own prices. This means that when the pricesetting firm increases the price, it does not lose all its customers. This means the demand curve for a pricesetting is downward sloping.
More Less

Related notes for ECON 1010

Log In


Join OneClass

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

Sign up

Join to view


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.