Principles of Economics Session 6
Principles of Economics Session 6
Topics To Be Covered ◆ Market structure Characteristics of Perfectly Competitive Market Profit Maximization for a Competitive Firm Zero-Profit point and shut-Down point Short-Run Supply curve ◆ Long-Run Supply Curve ◆ Producer Surplus Pricing Information
Topics To Be Covered Market Structure Characteristics of Perfectly Competitive Market Profit Maximization for a Competitive Firm Zero-Profit Point and Shut-Down Point Short-Run Supply Curve Long-Run Supply Curve Producer Surplus Pricing Information
Market structure ◆ Perfect Competition ◆ Monopoly ◆ Oligopoly Monopolistic Competition
Market Structure Perfect Competition Monopoly Oligopoly Monopolistic Competition
Characteristics of Perfectly Competitive Market Many buyers and sellers ◆ Product homogeneity ◆ Free entry and exit ◆ Price taking
Characteristics of Perfectly Competitive Market Many buyers and sellers Product homogeneity Free entry and exit Price taking
Product Homogeneity The products of all firms are perfect substitutes Y Examples: Agricultural products, oil, copper, iron, lumber
Product Homogeneity The products of all firms are perfect substitutes. Examples: Agricultural products, oil, copper, iron, lumber