Diagram of Knowledge: Chapter 10 
Pure competition
Monopoly
Oligopoly
Monopolistic
No control over price / price takers
Very easy to enter into industry and exit: no obstacles
Standardized Product
No non-price competition
A very large number of firms
Some control over price but within narrow limits
Relatively easy entry into industry
Differentiated products
Considerable emphasis on advertising, brand names and trademarks
Many firms
Purely Competitive Demand
Perfectly elastic demand
Differentiated and standardized types of products
Control over price is limited by mutual interdependence and is considerable with collusion
A few number of firms
Significant obstacles with regards to entry in this industry
A great deal of non price competition particularly with product differentiation
Products are very unique: no close subsititutes
There is considerable control over price
One firm
There are no ways to enter, the conditions of entry are blocked
Non price competition is mostly through public relations advertising
click to edit
Imperfect competition: All market structures expect pure competition
click to edit
Demand graph is horizontal
Average Revenue(Price):Total Revenue / Quantity
Total Revenue: Price * Quantity
Marginal Revenue: Change in revenue / Change in quantity
Break-even point: An output at which a firm makes a normal profit(total revenue=total cost) but not an economic profit
Profit=(P-A)*Q
The competitive producer will wish to produce at the output level where total revenue exceeds total cost by the greatest amount
click to edit
MC=MR RULE: The principle that a firm will maximize its profit(or minimize its losses) by producing the output at which Marginal Revenue and Marginal Cost are equal provided that product price is equal to or greater than average variable cost