11/1 notes Flashcards
what makes something profittable
willingness to pay/desire to buy things, which is reflected by price
firms market power in perfect competition
they have no market power
amount of firms in perfect compeitition
lots of firms
products sold in perfect competition are
identical products
barriers in perfect competition
no barriers, free entry, free exit into markets
perfect competition has _____ ________ behavior, where does price come from
price taking behavior
-price comes from something outside the firm
market power is
the ability to influence price
what type of market has MAX ability to influence price
monopoly
what type of market has high ability to influence price
olgopoly
what market has low ability to influence price
imperfect competition
imperfect competition exists
exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical perfect competition.
ologopoly is
a type of market structure that exists within an economy. In an oligopoly, there is a small number of firms that control the market.
monopoly is
defined as a single seller or producer that excludes competition from providing the same product
what is marginal revenue
increase in revenue that results from sale of one additional unit of output
what is Q on a graph
market level
what is q on a graph
particular firm
what are firms looking for (represented on a graph)
when MC intersects P
What is price equal to on a long-run graph
P
