Chapter 7 - Perfect competition. This chapter and the three that follow focus on the spectrum of industry structures. Markets are typically divided into four main categories: perfect competition, monopolistic competition, oligopoly, and pure monopoly.
Managerial Economics, 8e William F. Samuelson ● Stephen G. Marks Chapter Seven Perfect Competition Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Everything is worth what its purchaser will pay for it ~Anonymous Copyright © 2015 John Wiley & Sons, Inc. All rights reserved For Discussion Betting the Planet There has been an ongoing debate between economists and ecologists for the past 30 years about whether or not the world is running out of resources Copyright © 2015 John Wiley & Sons, Inc. All rights reserved The basics of supply and demand Shifts in Demand and Supply Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.1 Supply and demand Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.2 Shifts in supply and demand Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Competitive equilibrium Decisions of the Competitive Firm The Firm’s Supply Curve LongRun Equilibrium Market Equilibrium LongRun Market Supply Copyright © 2015 John Wiley & Sons, Inc. All rights reserved 1.3 Figure 7.3 Price and output under perfect competition Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.4 competitive price and output in the long run Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Market Efficiency Private Markets: Benefits and Costs The Demand and Supply of Day Care The Day Care Market Efficiency and Equity Dynamic, Marketwide Efficiency Market Competition and the Internet Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.5 A DayCare Transaction Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.6 Regional Demand for Day Care Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.7 A Competitive DayCare Market Copyright © 2015 John Wiley & Sons, Inc. All rights reserved International Trade Tariffs and Quotas Restricted Trade in Watches Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7.8 Trade Restrictions Copyright © 2015 John Wiley & Sons, Inc. All rights reserved ... Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7. 1 Supply and demand Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7. 2 Shifts in supply and demand Copyright © 2015 John Wiley & Sons, Inc. All rights reserved... Copyright © 2015 John Wiley & Sons, Inc. All rights reserved 1.3 Figure 7. 3 Price and output under perfect competition Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7. 4 competitive price and output in the long run... Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7. 5 A DayCare Transaction Copyright © 2015 John Wiley & Sons, Inc. All rights reserved Figure 7. 6 Regional Demand for Day Care Copyright © 2015 John Wiley & Sons, Inc. All rights reserved