TAILIEUCHUNG - Microeconomics for MBAs 38

Microeconomics for MBAs 38. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 11 Firm Production under Idealized Competitive Conditions Contestable Markets One of the most important developments in the study of markets is the theory of contestable The contestable market model stresses the importance of potential rather than actual competitors in a market. A market is deemed to be contestable if entry and exit are relatively easy. A market is perfectly contestable if entry is absolutely free and exit is costless. Free entry has a particular meaning in the theory of contestable markets it means that new firms entering an industry are not at any cost disadvantage compared to existing firms in the industry. In other words latecomers suffer no cost handicaps. Costless exit means that firms can leave the industry at any time and can recoup all costs incurred by entry. A contestable market then is marked by ease of entry and exit and in that respect is similar to a perfectly competitive market. Like a perfectly competitive market a contestable market will be characterized by zero economic profits in the long run. For a contestable market however we do not need a large number of firms and a homogeneous product. Indeed multiproduct firms are possible in contestable markets. A contestable market may have only two or three firms operating in it. Moreover those firms produce at rates of output where price is equal to marginal cost. What brings about this result Why do firms in contestable markets not produce and price at the monopoly equilibrium The reason is entry and exit. If price is not equal to marginal cost profit opportunities exist and new firms will quickly enter the market causing existing firms to make losses. The potential competitors force the existing firms to produce where price equals marginal cost. A firm in a contestable market is always open to hit and run attacks from its potential competitors. They will therefore be forced to produce and sell at an output where price equals marginal cost and economic profits are .

• Kinh tế học
• Kinh tế vi mô
• cao học
• The Economic Way of Thinking
• Competitive Product Markets
• Principles of Rational Behavior
• Society and Business
• trắc nghiệm kinh tế vi mô
• đề thi kinh tế vi mô
• bài tập kinh tế vi mô
• tài liệu kinh tế vi mô
• giáo trình kinh tế vi mô
• bài giảng kinh tế vi mô
• Ôn tập kinh tế vi mô
• Kinh tế vĩ mô
• bài tập kinh tế vĩ mô
• trắc nghiệm kinh tế vĩ mô
• đề thi kinh tế vĩ mô
• tài liệu kinh tế vĩ mô
• bài giảng kinh tế vĩ mô
• giáo trình kinh tế vĩ mô
• Các mô hình kinh tế
• Mô hình kinh tế
• Kinh tế học vi mô
• Kinh tế học
• Nhập môn kinh tế học
• Tổng quan kinh tế học vi mô
• Bài tập kinh tế học vi mô
• Ứng dụng kinh tế vi mô
• Bài tập môn kinh tế vi mô
• Bài tập thực hành kinh tế vi mô