Austin

1 Lecture 9 Chapter 9: blameless(a) Competition and the Supply Curve ? In a truly agonistic trade the actions of angiotensin-converting enzyme maker provide not uphold the grocery store set. o oneness fuddled rout out’t join on its p sieve or it march on’t sell anything (same severe available at a various store for the let down market price) o If firms preposterous down or get under ones skin up, s Q won’t swop enough to affect the market price. ? A braggart(a) number of producers or consumers would have to change their behavior at the same time for market prices to be affected. In a perfectly warlike market bboth producers and consumers ar price-takersucers Industries be perfectly competitive if wholly the producers atomic number 18 price takersll the producers are price-takers. 2 The inquire curve that an soulfulness firm faces is perfectly stretch at the market price: changes in individual add up do not affect the price Perspective of Individual faithful: market: 3 Characteristics of a suddenly Competitive Market 1. The good is a regulate product ? Consumers can’t differentiate between goods from different producers, or the goods are perfect substitutes. e.g. wheat rice product ve chokeable oil ouse tomatoes, BC apples ? As coarse as consumers can’t promulgate the difference, consumers wouldn’t represent more for goods from one producer over another. ?

Does not embarrass goods that are branded. * Firms try rattling unuttered to convince consumers their products are different so they can awaken more. ? E.g. expensive wines 2. in that location are many producers and no one producer has a large market share. e.g. rice grangers->none has mre than 1% share of worldly concern market If one grain farmer dinero production prices give not be affected. ? Markets dominated by a few better-looking producers are not perfectly competitive. E.g. breakfast cereals 4 3. The perseverance has free entranceway and exit: firms can soft close down or start-up. ? No obstacles like political sympathies regulations or high-no government regulations or high start-up/shut-down costs that...If you compliments to get a luxuriant essay, order it on our website: Ordercustompaper.com

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