TAILIEUCHUNG - Lecture Business economics - Lecture 11: Monopolistic competition

Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly. Types of imperfectly competitive markets: Monopolistic Competition and oligopoly. Markets that have some features of competition and some features of monopoly. The following will be discussed in this chapter: Monopolistic competition, competition with differentiated products, advertising. | Review of the previous lecture A monopoly is a firm that is the sole seller in its market. It faces a downward-sloping demand curve for its product. A monopoly’s marginal revenue is always below the price of its good. Like a competitive firm, a monopoly maximizes profit by producing the quantity at which marginal cost and marginal revenue are equal. Unlike a competitive firm, its price exceeds its marginal revenue, so its price exceeds marginal cost. A monopolist’s profit-maximizing level of output is below the level that maximizes the sum of consumer and producer surplus. Review of the previous lecture A monopoly causes deadweight losses similar to the deadweight losses caused by taxes. Policymakers can respond to the inefficiencies of monopoly behavior with antitrust laws, regulation of prices, or by turning the monopoly into a government-run enterprise. If the market failure is deemed small, policymakers may decide to do nothing at all. Monopolists can raise their profits by .

• Kinh tế học
• Business economics
• Lecture Business economics
• Business applications of economics
• Open economy
• Competitive markets
• Monopolistic competition
• Economic Models
• Principles of economics
• Economics of agriculture
• Macroeconomic policy
• Supply curve
• Elasticity of demand
• Consumer choice
• Competitive firms
• Imperfect competition
• Gross domestic product
• Financial intermediaries
• Productivity growth
• Natural rate of unemployment
• Labor force
• Money supply