MGMT 4A Lecture Notes - Lecture 13: Joe S. Bain, Pareto Efficiency, Imperfect Competition
Document Summary
Overview of industry structure, conduct, and performance. Market failures that lead to imperfect competition. Consumer and producer surplus and deadweight loss. Module 1: overview of industry structure, conduct, and performance. Move on to how industries and markets are organized. Management strategy will be cover this week. Refers to the number, size, cost, division of firms. What level a firm sets it price (price competition) All of the efficiency tells us how society"s resources are used. Perfect competition is the best measure of market structure because perfect competition is the most productively and allocatively efficient type of market structure (shown by. The assumption is too restrictive for most industries. There are few companies that meet this perfect competition. Numerous buyers and sellers perfectly competitive firms are price takers . Price taker = a firm can change its rate of production and sales without having any impact on the market price. Equilibrium meets where the supply and demand curve meets.
