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Bellringer, graph news story on your slates
You are given revenue, sketch: MC, ATC, D, MR,
different than modern films bec...
Discussion with your partner
1. Why would it be bad if you were
a firm in a perfect competition
market?
2. Why do consumer...
Economic Competition
• 5 basic market types:
– Perfect Competition
– Monopolistic Competition
– Oligopoly
– Monopoly
– Mon...
You sell….
• Your boss gives
you $100,000 to
develop a plan
gain some pricing
power. What will
you suggest the
company spe...
You sell….
• New type of pencil and
patent
• New colors
• New erasers
• Advertise
• Support gov’t regulation to
keep compe...
Monopolistic Competition Market
• Features:
• Many firms
• Different or perceived different
products (brand names too)
• S...
Perfect
Competition
Monopolistic
Competition
Oligopoly Monopoly
On your white boards: What type of
market?
• Blank DVD’s
What type of market?
• Mexican Food
What type of market?
What type of market?
What type of market?
What type of market?
• Hair cut
What type of market?
What type of market?
• Blank DVD’s
What type of market?
• Electric Power
What type of market?
• Notebook paper
What type of market?
• Hotels
Perfect Competition graph
Monopolistic Competition graph
Monopolistic Competition graph
Monopolistic Competition graph
LR Monopolistic Competition graph
• DWL
Please bring your book tomorrow
01 monopolistic comp
01 monopolistic comp
01 monopolistic comp
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01 monopolistic comp

  1. 1. Bellringer, graph news story on your slates You are given revenue, sketch: MC, ATC, D, MR, different than modern films because it’s a re-release Universal Pictures has a technological monopoly on this film because of copyright.
  2. 2. Discussion with your partner 1. Why would it be bad if you were a firm in a perfect competition market? 2. Why do consumers like perfect competition market? 3. Under what condition should a firm shut down rather than exit the market? Please bring your book tomorrow
  3. 3. Economic Competition • 5 basic market types: – Perfect Competition – Monopolistic Competition – Oligopoly – Monopoly – Monopsony • Measures price/nonprice competition, and product differentiation
  4. 4. You sell…. • Your boss gives you $100,000 to develop a plan gain some pricing power. What will you suggest the company spend money on?
  5. 5. You sell…. • New type of pencil and patent • New colors • New erasers • Advertise • Support gov’t regulation to keep competition out • Sign exclusive deal with Office Max, TUSD, College Board, etc
  6. 6. Monopolistic Competition Market • Features: • Many firms • Different or perceived different products (brand names too) • Some pricing power “price makers” • Can be easy to start new firm • Can be easy to close down firm • Not fully informed consumers Other Examples?
  7. 7. Perfect Competition Monopolistic Competition Oligopoly Monopoly
  8. 8. On your white boards: What type of market? • Blank DVD’s
  9. 9. What type of market? • Mexican Food
  10. 10. What type of market?
  11. 11. What type of market?
  12. 12. What type of market?
  13. 13. What type of market? • Hair cut
  14. 14. What type of market?
  15. 15. What type of market? • Blank DVD’s
  16. 16. What type of market? • Electric Power
  17. 17. What type of market? • Notebook paper
  18. 18. What type of market? • Hotels
  19. 19. Perfect Competition graph
  20. 20. Monopolistic Competition graph
  21. 21. Monopolistic Competition graph
  22. 22. Monopolistic Competition graph
  23. 23. LR Monopolistic Competition graph • DWL
  24. 24. Please bring your book tomorrow

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