英文10垄断竞争.pptxVIP

Four Types of Industries Imperfectly Competitive MarketsMonopolyMonopolistic Competition Many firms selling products that are similar but not identical.OligopolyOnly a few sellers, each offering a similar or identical product to the others.Many firmsOne firmFew firmsDifferentiated productsIdentical productsThe Four Types of Market StructureNumber of Firms?Type of Products?MonopolyOligopolyMonopolistic CompetitionPerfect Competition Tap water Cable TV Tennis balls Crude oil Novels Movies Wheat MilkMonopolistic CompetitionMonopolistic CompetitionMarkets that have some features of competition and some features of monopoly.Attributes of Monopolistic CompetitionMany sellersProduct differentiationFree entry and exit------Many SellersThere are many firms competing for the same group of customers.Product examples include books, CDs, movies, computer games, restaurants, piano lessons, cookies, furniture, etc.Product DifferentiationEach firm produces a product that is at least slightly different from those of other firms.Rather than being a price taker, each firm faces a downward-sloping demand curve.Free Entry or ExitFirms can enter or exit the market without restriction.The number of firms in the market adjusts until economic profits are zero.PriceAveragetotal costProfitProfit- maximizing quantityMonopolistic Competitors in the Short Run...(a) Firm Makes a ProfitPriceMCATCDemandMR0QuantityLossesAveragetotal costPriceLoss- minimizing quantityMonopolistic Competitors in the Short Run...(b) Firm Makes LossesATCMCPriceDemandMR0QuantityMonopolistic Competition in the Short RunShort-run economic profits encourage new firms to enter the market. This:Increases the number of products offered.Reduces demand faced by firms already in the market.Incumbent（传统运营商） firms’ demand curves shift to the left.Demand for the incumbent firms’ products fall, and their profits decline.Monopolistic Competition in the Short RunShort-run economic losses encourage firms to exit the market. This: De