ECON 201 Lecture Notes - Lecture 10: Acura, Negative Relationship, Best Response
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ECON 201 Full Course Notes
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Chapter objectives: the idea of the imperfect competitor, why market structures differ, monopolistic competition, oligopoly, game theory & independence, duopoly & cournot competition, entry & potential competition. Monopoly explores behavior of a single firm in the economy. Lr profits continue 2 exist: they expand resources in order 2 maintain their monopoly position. Perfectly competitive market explores an indefinitely large number of firms in a given sector of the economy: normal profits. Imperfect competition market structures r characterized by a limited # of firms. Video 1 (11. 1) introduction to imperfect competition. 3 general market structures: monopolistic competition: a large # of firms, but not as many as imperfect competition, oligopoly & game theory: a limited or small # of firms, duopoly: 2 firms. Imperfect competitive firm: faces downward-sloping d curve, & its output price reflects the quantity it sells (including monopolists) Imperfect competition is a general name incorporating several distinct market structures.