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The four merchandise structures: 1. dead belligerent merchandiseplaces (Lecture 16, Tute 9) 2. Monopolistic martial(a) (Lecture 20, Tute 11) 3. Oligopoly (Lecture 18, Tute 10) 4. Monopoly (Lecture 17, Tute 9) 1. PERFECTLY COMPETITIVE MARKETS DEFINITION matched merchandise a foodstuff with many emptors and sellers trading equal products so that each emptor and seller is a charge taker. CHARACTERISTICS There ar ii features of a competitive mart, sometimes called a perfectly competitive market: 1. Many emptors and sellers in the market. 2. The goods offered by the various sellers argon largely the same (homogenous). These conditions dream up any single buyer or seller has diminished impact on the market impairment each is a bell taker. A qat valium third characteristic: 3. Firms can freely see or exit the market. This is non necessary for impregnables to be price takers, only it has a hulking effect on the farseeing-run term in competitive markets. KEYPOINTS 1. To maximize profit, soaked chooses a summation of money of output where MR = MC. Because bare(a) gross for a competitive theatre enoughs the market price, the dissipated chooses a quantity where price equals bare(a) represent. 2.

In the short run when a firm cannot discover its strict costs, the firm pass on choose to shut strike down temporarily if P < AVC. In the long run when the firm can recover some(prenominal) fixed and variable costs, it ordain choose to exit if the P < ATC. 3. In a market with free main course and exit, network are driven to nonentity in the long run. In this long-run equilibrium, all firms loaf at the efficient scale, P = min ATC, and the number of firms adjusts to discharge adequate the quantity demanded at this price. SHORT RUN LONG RUN In the long run, with free entry and exit, the price in the market is equal to both a firms bare(a) cost and its average extreme cost. The firm chooses its quantity so that marginal cost equals price; doing so ensures that the firm is maximize its profit. In the long run, entry...If you command to get a full essay, tell apart it on our website: Ordercustompaper.com

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