经济学教学课件 17_4E.pptVIP

? 2007 Thomson South-Western;Monopolistic Competition;The Four Types of Market Structure;Monopolistic Competition;Monopolistic Competition;Monopolistic Competition ;Monopolistic Competition ;Monopolistic Competition ;COMPETITION WITH DIFFERENTIATED PRODUCTS;Figure 1 Monopolistic Competition in the Short Run;The Monopolistically Competitive Firm in the Short Run;Figure 1 Monopolistic Competitors in the Short Run;The Long-Run Equilibrium;Figure 2 A Monopolistic Competitor in the Long Run;The Long-Run Equilibrium;Monopolistic versus Perfect Competition;Monopolistic versus Perfect Competition;Figure 3 Monopolistic versus Perfect Competition;Monopolistic versus Perfect Competition;Figure 3 Monopolistic versus Perfect Competition;Figure 3 Monopolistic versus Perfect Competition;Monopolistic Competition and the Welfare of Society;Monopolistic Competition and the Welfare of Society;Monopolistic Competition and the Welfare of Society;Monopolistic Competition and the Welfare of Society;ADVERTISING;ADVERTISING;The Debate over Advertising;The Debate over Advertising;Advertising as a Signal of Quality;Brand Names;Brand Names;Table 1 Monopolistic Competition: Between Perfect Competition and Monopoly;A monopolistically competitive market is characterized by three attributes: many firms, differentiated products, and free entry. The equilibrium in a monopolistically competitive market differs from perfect competition in that each firm has excess capacity and each firm charges a price above marginal cost. ;Monopolistic competition does not have all of the desirable properties of perfect competition. There is a standard deadweight loss of monopoly caused by the markup of price over marginal cost. The number of firms can be too large or too small. ;The product differentiation inherent in monopolistic competition leads to the use of advertising and brand names. Critics argue that firms use advertising and brand names to take advantage of consumer irrationality and to reduce compet