ECO 1104 Lecture : ECO1104 detailed notes for chapter 4-5

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: J Ianweizhen

Document Summary

A market is a group of buyers and sellers of a particular product: the type of market can be determined by the number of buyers and sellers. A competitive market is one with many buyers and sellers, each has a negligible effect on price: leads to many competitors within the marketplace. In a perfectly competitive market: all goods are exactly the same, buyers and sellers are so numerous that no one can affect market price each is a. In the real world there is relatively few perfectly competitive markets. Most goods come in lots of different varieties- including ice-cream: there are many markets in which the number of firms is small enough that some of them have the ability to affect the market price. In this chapter, we assume markets are perfectly competitive. Oligarchy: few sellers who work together in a group: price is relatively stable.