5.4 垄断竞争-讲义.pdf

Part V: Firm Behavior and the Organization of Industry Monopolistic Competition Contents 1. What are the characteristics of monopolistic competition? 2. How do monopolistically competitive firms choose price and quantity? Do they earn economic profit? 3. In what ways does monopolistic competition affect society’s welfare? 4. What are the social costs and benefits of advertising? Monopolistic Competition Four Types of Market Structure Number of Sellers Many Type of Products A few Sole Identical Similar Monopolistic Perfect Competition Competition Oligopoly Monopoly 完全竞争 垄断竞争 寡头 垄断 Imperfect Competition (with market power) Characteristics of Monopolistic Competition 1. Many sellers 2. Free entry and exit – Zero economic profit in the long run 3. Product differentiation – Not price takers, P MC – Downward sloping demand curve © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password -protected website for classroom use. Monopolistic Competitors in the Short Run MR = MC (a) Firm makes profit (b) Firm makes losses P P ATC