Log in
HomeTextbook Notes300,000CA170,000

ECO100Y5 Chapter Notes - Chapter 9: Marginal Revenue, Perfect Competition, Market Structure

25 views3 pages
School
UTM
Department
Economics
Course
ECO100Y5
Professor
Michael H O

For unlimited access to Textbook Notes, a Class+ subscription is required.

sophiapham192 and 37296 others unlocked
ECO100Y5 Full Course Notes
53
ECO100Y5 Full Course Notes
Verified Note
53 documents

Document Summary

Market structure; all features of market that afect behavior and performance of irms in that market: number and size of sellers, extent of knowledge about another"s acions, degree of freedom of entry, degree of product difereniaion. Market power; ability of irm to inluence price of its product. Market is compeiive when irms have litle or no market power. More market power irms have, less compeiive the market structure. Perfectly compeiive market structure/perfectly compeiive market: no need for individual irms to compete with one another, all irms have equal power. Perfect compeiion; market structure in which all irms in industry are price takers, and in which there is freedom of entry into and exit from the industry. Assumpions of perfect compeiion: all irms in industry sell idenical product. Each irm is small relaive to industry: industry characterized by freedom of entry and exit; new irms free to enter and start producing, old irms free to cease producion.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related Documents

ECO100Y5 Lecture Notes - Lecture 9: Taipei Metro, Sunk Costs, Marginal Revenue
redtoad679
ECO100Y5 Chapter Notes - Chapter 9: Opportunity Cost, Competitive Equilibrium, Average Variable Cost
orangezebra23
ECO100Y5 Chapter 9: Chapter 9- Competitive Markets.docx
aquamarinemallard749

Related Questions

25. One difference between perfect competition and monopolistic competition is A) firms in a perfectly competitive market produce similar but slightly different products. B) in perfect competition, the product produced has no close substitutes. C) monopolistic competition has barriers to entry, whereas perfect competition has none. D) a small number of firms compete in a monopolistically competitive market and a large number of firms compete in a perfectly competitive market. E) firms in monopolistic competition have some degree of market power.

1. When a profit-maximizing firm produces, they will be producing at that output at which marginal cost = marginal revenue:

  • all of the time
  • some of the time
  • on rare occasions
  • none of the time

2. Economics Profit is:

  • the same as accounting profit
  • sales minus explicit costs and implicit costs
  • sales minus variable costs and fixed costs
  • opportunity cost only

3. A market structure with so many firms that no one firm has any influence over price, and firms produce an identical product is called:

  • monopoly
  • oligopoly
  • perfect competition
  • monopolistic competition

4. Which of the following is NOT a characteristic of a perfectly competitive market?

  • identical products
  • perfect mobility
  • perfect knowledge
  • price maker

5. The demand curve in a perfectly competitive market is perfectly elastic.

  • true
  • false

1. Which of the following is a characteristic of pure monopoly?

A. close substitute products

B. barriers to entry

C. the absence of market power

D. "price taking"

 

2. An example of a monopoly would be

A. one of many U.S. wheat farmers

B. one of the few U.S. automakers

C. AT&T cell phone service

D. the local water company

 

3. In which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit?

A. monopoly

B. oligopoly

C. only perfect competition

D. only monopolistic competition

E. both perfect competition and monopolistic competition

 

4. Which of the following is the best example of a perfectly competitive market?

A. farming

B. diamonds

C. athletic shoes

D. soft drinks

E. electricity distribution