TAILIEUCHUNG - THẠC SỸ KINH TẾ - KINH TẾ VI MÔ - phần 12

Economists understand by the term market, not any particular market place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such free intercourse with one another that the prices of the same goods tend to equality, easily and quickly. | CHAPTER 11 Firm Production under Idealized Competitive Conditions Economists understand by the term market not any particular market place in which things are bought and sold but the whole of any region in which buyers and sellers are in such free intercourse with one another that the prices of the same goods tend to equality easily and quickly. Augustin Cournot Preceding chapters dealt separately with the two sides of markets consumers and producers. We devised graphic means of representing consumer preferences the demand curve and producer costs average and marginal cost curves . This chapter brings demand and cost analysis together in order to examine the way in which individual firms react to consumer demand in competitive markets. Our focus will be on a highly competitive market structure called perfect competition. We will investigate an intriguing question at the limit how much can competitive markets contribute to consumer welfare We will not attempt to give a full description of a real-world competitive market setting. Because markets are so diverse such a description would probably not be very useful. Our aim is rather to devise a theoretical framework that will enable us to think about how markets work in general as a constructive behavioral force. Although our model cannot tell much that is specific about real-world markets it will provide a basis for predicting the general direction of changes in market prices and output. Through its analysis we should gain a deeper understanding of the meaning of market efficiency. Perfect competition is only one of four basic market structures. The other three and the detrimental effects of their restrictions on competition are the subjects of following chapters. The Four Market Structures Markets can be divided into four basic categories based on the degree of competition that prevails within them -- that is on how strenuously participants attempt to outdo and avoid being outdone by their rivals. The most .

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