ECON 103 Lecture Notes - Lecture 13: Marginal Revenue, Demand Curve, Marginal Cost
13 Jan 2022
School
Department
Course
Professor
Document Summary
There are markets for which firms have various advantages over other firms which called price searcher. A price searching firm faces a downward sloping demand curve and these are the reasons why: costly product information. Some people they do not want to change the store is because the information sometime can be costly. For example, if someone were to change store, they will not trust the new store, therefore they will spend time and effort to see whether the new store is trustworthy (i. e. buying cars). And this process can sometime be more costly than staying in the old one: location advantage. If the cheaper store is like 3 km away, you would rather to choose the more expensive one beside your house because of the location only: slightly different product. If you pick any product whether blue jeans, frozen juice, or jointers, there is always a slight difference.
