ECO100Y5 Chapter Notes - Chapter 13: Average Cost, Monopolistic Competition, Marginal Cost

• School: UTM
• Department: Economics
• Course: ECO100Y5
• Professor: Michael H O

Document Summary

Monopolist: sole provider of good: their actions affect market prices; take this into account when deciding how much to produce. Figure caption: figure 13-1: types of market structure. The behaviour of any given rm and the market it occupies are analyzed using one of four models of market structure monopoly, oligopoly, perfect competition, or monopolistic competition. This system for categorizing market structure is based on two dimensions: (1) whether products are differentiated or identical and (2) the number of producers in the industry one, a few, or many. A monopolist can increase pro t by limiting the quantity supplied to a market (behaviour that also occurs in oligopoly and monopolistic competition. ) A monopolist is a rm that is the only producer of a good that has no close substitutes. An industry controlled by a monopolist is known as a monopoly, e. g. de beers.