always identical to Your Answer : marginal revenue Correct Answer : marginal revenue The Choices Were: • marginal cost • marginal revenue • total revenue • average total cost ________________________________________ Correct Answer Perfect competition is not characterized by Your Answer : sizable barriers preventing new firms from entering the market Correct Answer : sizable barriers preventing new firms from entering the market The Choices Were: • sizable barriers preventing
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| American Military University |We will examine the market structures of Monopoly‚ Monopolistic Competition‚ Oligopoly‚ and Perfect Competition and there subsequent pricing | |strategies. Using this information we will examine in brief The LEGO Group as a Monopoly and now competing with Monopolistic Competition | |tendencies.
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Games: Maintaining Competition" In the movie the Hunger Games‚ the role the government plays is maintaining competition. The role is maintaining competition because the government enforces anti-trust laws. An anti-trust law is a law that allows the federal government to regulate monopolies and trust. They regulate trust because trust is a group of companies that band together to form a monopoly and eliminate competition. They regulate this because they don’t want competition eliminated. That is
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traditional Monopoly diagram Under Monopoly: Welfare Loss is ABC 21 18 15 12 C A E G Under 2 Firm Cournot : Welfare Loss is EFB Under PC: No Welfare Loss B F H MC = AC MR 0 9 12 15 18 D 30 Q 8 • • • • • • • Under Perfect Competition; P = 12‚ Q = 18 (No welfare loss) Under Monopoly; P = 21‚ Q = 9 (Welfare loss is ABC) Under 2 Firm Cournot; P = 18‚ Q = 12
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can be national (royal mail)‚ regional (water companies) or local (petrol station). Unlike a perfect competition situation were firms are ’price takers ’ and only respond to consumer demand‚ a monopoly finds itself in an imperfect competition market. In this type of market the firm is more of a ’price maker ’ and can therefore influence the market price. When comparing monopoly and perfect competition under the same conditions‚ we can find that the monopolist when in equilibrium produces a lower
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under. As mentioned earlier‚ firms’ profit maximizing output decisions take into account the market structure under which they are operating. There are four kinds of market organizations: perfect competition‚ monopolistic competition‚ oligopoly‚ and monopoly. Perfect Competition Perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. For a market structure to be deemed “Perfectly Competitive”‚ it
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number of sellers present in the market and whether we are considering a homogeneous or differentiable commodity. We will consider four types of market structures: 1. Pure Competition 2. Pure Monopoly 3. Monopolistic Competition 4. Oligopoly Market classifications from the buyer’s angle are‚ 1. Pure Competition 2. Pure Monopsony 3. Oligopsony A bilateral monopoly is a situation where a single seller confronts a single buyer. Answers to two questions are sought throughout the analysis:
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maximization * Model * Economic profit ≠ accounting profit Market structures * Perfect competition * Monopolistic competition * Oligopoly * Monopoly Perfect competition * Many (small) suppliers and buyers: ‘price takes’ * Demand function for individual company * Products are perfect substitutes * Free entry and exit * Information is perfect (available to all no
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What are Costs? * Goal of a firm is to maximize profit * Total Revenue = Q x P * Total Cost = market value of inputs firm uses in production * Profit = TR – TC * Costs of production = opportunity costs of output of goods and services * Explicit costs = input costs that require outlay of money by firm * i.e. $1000 spent on flour = opportunity cost of $1000 because can’t be spent elsewhere * Implicit costs = input costs that do not require outlay of money by firm
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Unfair competition Ling Pre-MBA Brant Williams September 23‚ 2012 In this society‚ the development of economic is rapid. So competition becomes inevitable. It plays a regulatory function in balancing demand and supply. In this case‚ unfair competition arises at the historic moment. Unfair competition means unjust and often illegal attempt to gain unfair competitive advantage through false‚ fraudulent‚ or unethical commercial conduct. Examples include below-cost
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