Title: Perfect competition and monopoly: The limiting cases of market structure
1Perfect competition and monopolyThe limiting
cases of market structure
2Perfect competition
Characteristics of a perfectly competition market
3The supply curve under perfect competition (1)
4The supply curve under perfect competition (2)
5The supply curve under perfect competition (3)
6The firm and the industry in the short run under
perfect competition (1)
INDUSTRY
Firm
7The firm and the industry in the short run under
perfect competition (2)
INDUSTRY
SAC
8The firm and the industry in the short run under
perfect competition (3)
INDUSTRY
9Long-run equilibrium
INDUSTRY
Firm
10Adjustment to an increase in market demandthe
short run
11Adjustment to an increase in market demandthe
long run
12Monopoly
13Profit maximization by a monopolist
14Comparing monopoly with perfect competition (1)
Suppose a competitive industry is taken over by a
monopolist
15Comparing monopoly with perfect competition (2)
Suppose a competitive industry is taken over by a
monopolist
Output
16Comparing monopoly with perfect competition (3)
17A natural monopoly
18Discriminating monopoly
19Imperfect Competition
- Why examine imperfect competitive market
structures - Examples of imperfect competition
20Most markets fall between the two extremes of
monopoly and perfect competition
- An imperfectly competitive firm
21Imperfect competition
- An oligopoly
- In an industry with monopolistic competition
22Market structure
23The minimum efficient scale and market demand
24Monopolistic competition
25Monopolistic competition (2)
MC
AC
F
P1AC1
D
MR
Q1
Output
26Oligopoly
27Collusion and cartels
28Collusion is difficult if
29The kinked demand curve (1)
30The kinked demand curve (2)
31The kinked demand curve (3)
32The kinked demand curve (4)