ECON 1000 Lecture Notes - Lecture 12: Perfect Competition, Demand Curve, Opportunity Cost
Document Summary
*we went over questions on the exam that many people got wrong, and all exam grades are posted on. Sellers produce a homogenous product: costless mobility of resources, but real-world competition is a constant adjustment process. The problem is that usually being visualized is how capitalism administers existing structures, whereas the relevant problem is how it creates and destroys them joseph. A. schumpeter: prof. langlois: the automobiles creatively destroys the horse and carriage. It"s good for people who want faster transportation but bad for people who run the horse and carriages. What is a monopoly: a monopoly is a single seller of a product or service. Is anything ever really a monopoly: anticipated future competition, substitutes. Two systems of belief about monopoly: spontaneous monopoly a. Natural tendency" for monopolies to arise and persist: need for active antitrust policy. Interventionist monopoly: competition tends to eliminate market power unless there are structural barriers, true monopoly is a creature of the state.
