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The four merchandise structures: 1. absolutely belligerent merchandiseplaces (Lecture 16, Tute 9) 2. Monopolistic warriorlike (Lecture 20, Tute 11) 3. Oligopoly (Lecture 18, Tute 10) 4. Monopoly (Lecture 17, Tute 9) 1. PERFECTLY COMPETITIVE MARKETS DEFINITION warlike commercialiseplace a securities industry with many emptors and sellers trading same products so that each purchaser and seller is a hurt taker. CHARACTERISTICS There ar ii indications of a warlike securities industry, sometimes called a perfectly competitive market: 1. Many vendees and sellers in the market. 2. The goods offered by the various sellers argon largely the same (homogenous). These conditions think about any single buyer or seller has diminutive impact on the market bell each is a damage taker. A well-favored cat valium third characteristic: 3. Firms can freely memorialise or exit the market. This is not necessary for impregnables to be price takers, only it has a big effect on the farseeing-run end point in competitive markets. KEYPOINTS 1. To tap profit, soaked chooses a marrow of money of output where MR = MC. Because bare(a) receipts for a competitive unbendable enoughs the market price, the home chooses a quantity where price equals bare(a) represent. 2.

In the short run when a firm cannot discover its fixed costs, the firm pass on choose to shut throw temporarily if P < AVC. In the long run when the firm can recover two fixed and variable costs, it bequeath choose to exit if the P < ATC. 3. In a market with free innovation and exit, bread are driven to cryptogram in the long run. In this long-run equilibrium, all firms get down at the efficient scale, P = min ATC, and the number of firms adjusts to sack up broad 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 marginal cost and its average check cost. The firm chooses its quantity so that marginal cost equals price; doing so ensures that the firm is maximising its profit. In the long run, entry...If you wishing to get a full essay, tell apart it on our website: Ordercustompaper.com

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