A COMPARISON OF PERFECT COMPETITION, （比较完美的竞争,）.pdfVIP

A COMPARISON OF PERFECT COMPETITION, MONOPOLISTIC COMPETITION, MONOPOLY, OLIGOPOLY Type of Number of Type of Market Sellers Product Price SR profit LR Profit perfect equal pos., neg., competition many identical to MC or zero zero monopolistic greater pos., neg., competition many differentiated than MC or zero zero greater pos., neg., pos. or monopoly one than MC or zero zero oligopoly few identical or greater pos., neg., pos. or differentiated than MC or zero zero PERFECT COMPETITION, MONOPOLY, MONOPOLISTIC COMPETITION, AND OLIGOPOLY: GRAPHING TIPS (1) For all firms, the MC curve must intersect the ATC at the minimum of the ATC curve. (2) When a firm is making positive profits, the ATC curve must lie at least partially below the demand curve. (3) When a firm is making negative profits (losses), the ATC curve must lie entirely above the demand curve. (4) When a firm is making zero profits (breaking even), the ATC curve must be tangent to the demand curve. (5) For perfect competition, the firm’s demand curve must be horizontal and the same as the MR curve. (6) For monopolistic and monopolistically competitive firms, the firm’s demand curve slopes down to the right. Theoretically, the monopolistic firm has a steeper demand curve than the monopolis-tically competitive firm. For both the monopolistic and monopo- listically competitive firms, the MR curve is twice as steep as the demand curve (if the demand curve is a straig