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Perfect competition and monopoly: The limiting cases of market structure

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Characteristics of a perfectly competition market. 9.2 ... An imperfectly competitive firm. 9.20. Imperfect competition. An oligopoly ... – PowerPoint PPT presentation

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Title: Perfect competition and monopoly: The limiting cases of market structure


1
Perfect competition and monopolyThe limiting
cases of market structure
2
Perfect competition
Characteristics of a perfectly competition market
3
The supply curve under perfect competition (1)
4
The supply curve under perfect competition (2)
5
The supply curve under perfect competition (3)
6
The firm and the industry in the short run under
perfect competition (1)
INDUSTRY
Firm

7
The firm and the industry in the short run under
perfect competition (2)
INDUSTRY
SAC
8
The firm and the industry in the short run under
perfect competition (3)
INDUSTRY
9
Long-run equilibrium
INDUSTRY
Firm
10
Adjustment to an increase in market demandthe
short run
11
Adjustment to an increase in market demandthe
long run
12
Monopoly
13
Profit maximization by a monopolist
14
Comparing monopoly with perfect competition (1)
Suppose a competitive industry is taken over by a
monopolist
15
Comparing monopoly with perfect competition (2)
Suppose a competitive industry is taken over by a
monopolist
Output
16
Comparing monopoly with perfect competition (3)
17
A natural monopoly
18
Discriminating monopoly
19
Imperfect Competition
  • Why examine imperfect competitive market
    structures
  • Examples of imperfect competition

20
Most markets fall between the two extremes of
monopoly and perfect competition
  • An imperfectly competitive firm

21
Imperfect competition
  • An oligopoly
  • In an industry with monopolistic competition

22
Market structure
23
The minimum efficient scale and market demand
24
Monopolistic competition
  • Characteristics

25
Monopolistic competition (2)
MC

AC
F
P1AC1
D
MR
Q1
Output
26
Oligopoly
27
Collusion and cartels
  • COLLUSION
  • CARTEL

28
Collusion is difficult if
29
The kinked demand curve (1)
30
The kinked demand curve (2)
31
The kinked demand curve (3)
32
The kinked demand curve (4)
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