市场结构和不完美竞争.pptVIP

* See Section 9-3. * See Section 9-3. * See Section 9-3. * See Section 9-3, and Figure 9-4. * See Section 9-3, and Figure 9-4. * See Section 9-3 in the main text, and Figure 9-4. * See Section 9-3 in the main text, and Figure 9-4. * See Section 9-4 in the main text. * See Section 9-4 in the main text, and Figure 9-5. * See Section 9-4 in the main text. The McGraw-Hill Companies, 2008 Chapter 9Market structure and imperfect competition David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 9th Edition, McGraw-Hill, 2008 PowerPoint presentation by Alex Tackie and Damian Ward Most markets fall between the two extremes of monopoly and perfect competition An imperfectly competitive firm would like to sell more at the going price faces a downward-sloping demand curve recognises its output price depends on the quantity of goods produced and sold Imperfect competition An oligopoly an industry with few producers each recognising that its own price depends both on its own actions and those of its rivals. In an industry with monopolistic competition there are many sellers producing products that are close substitutes for one another each firm has only limited ability to influence its output price. Market structure The minimum efficient scale and market demand The minimum efficient scale (mes) is the output at which a firm’s long-run average cost curve stops falling. The size of the mes relative to market demand has a strong influence on market structure. D LAC1 LAC2 LAC3 Output ￡ Monopolistic competition Characteristics: many firms no barriers to entry product differentiation so the firm faces a downward-sloping demand curve The absence of entry barriers means that profits are competed away... Monopolistic competition (2) Firms end up in TANGENCY EQUILIBRIUM, making normal profits. Firms do not operate at minimum LAC. Price exceeds marginal cost. Unlike perfect competition, the firm here is eager to sell more at the going market price. P1=AC1 ￡ Output Q1 D MR AC MC F