Version User Scope of changes
Jan 19 2009, 1:17 PM EST (current) JoshAppleton 2 words added
Nov 18 2007, 6:04 AM EST Robert.Wang 1 word added, 1 word deleted

Changes

Key:  Additions   Deletions
Four Market Models
  • Pure Competition
  • Pure monopoly
  • Monopolistic Competition
  • Oligopoly

Pure Competition: Characteristics and Occurrence
  • Very large number of firms
  • Standardized product
  • "Price takers"
  • Free entry and exit
  • Many substitutes

Demand as Seen by a Purely Competitive Seller
  • Perfectly Elastic Demand
  • Average, Total and Marginal Revenue

Profit Maximization in the Short-run: TR/TC Approach

Profit Maximization in Short-run: MR/MC Approach
  • Profit-maximizing case
  • Loss-minimizing case
  • Shut-down case

MC and Short-run Supply

Profit-Maximization in the Long-run
  • Assumptions
  • Long-run Equilibrium
    • Entry eliminates economic profits
    • Exit eliminates losses
  • Long-run Supply for a constand cost industry
  • LR supply for an increasing cost industry
  • LR supply for a decreasing-cost industry

Pure Competition and Efficiency
  • Productive Efficiency
  • Allocative Efficiency
  • Maximum CS and PS