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lecture 8: (imperfect market (competition exits, resources time and money…
lecture 8:
imperfect market
competition exits
resources time and money cause imbalance
contracting
entry of new firms restricted
market is never ideal
buyers and sellers in small number
not aware of market position
characteristics of monopoly
price setter
block entry
single firm
no close substitute available
kind of imperfect market
monopoly
monopolistic competitive market
oligopoly
regulators
decipline
effectiveness of rules
price is greater than ATC
in case of loss
price is below ATC
market is the market of credit
less production more profit maintain equilibrium where revenue is increasing
less expenditure control costs
MC=MR (is a good sign)
normal profit