Econ

Pure Competition-

Ð'* Definition- Market structure in which a very large number of firms sell a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition, and there are a large number of buyers and sellers.

Ð'* Characteristics- Large number of buyers and sellers, perfectly elastic, homogeneous products, to efficient, has allocative efficiency.

Ð'* Short/long run profit- May make or lose money in the short run, Breaks even in the long run.

Ð'* Demand/Marginal Revenue Curves- Perfectly Elastic, Horizontal lines.

Ð'* Example- Closest to a real life example would be produce at a farmers market.

Monopoly-

Ð'* Definition- Market structure in which the number of sellers is so small than each seller is able to influence the total supply and the price of the good or service.

Ð'* Characteristics- Once seller, no substitutes, has pricing power, almost complete barrier to enter industry.

Ð'* Short/Long Run Profit- Always makes a profit.

Ð'* Demand/Marginal Revenue Lines- Downward sloping demand curve and MR is Ð'Ð... the demand curve.

Ð'* Examples- Regulated in real life but Comcast had a large monopoly for a time.

Monopolistic Competition-

Ð'* Definition- Market structure in which the number of sells is small, Brand name products, easy entry to industry.

Ð'* Characteristics- Fewer sellers than Pure Competition but more than a Monopoly,