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monopolist competition and economics, GDP and inflation - Coggle Diagram

- - - - product development: by innovation, pre/after-sales, complementary services
      - advertising: create band loyalty and enhance perceived differentiation
- - - - many small firm
      - free entry or exit
      - homogeneous/standarised product
      - price taker
      - horizontal demand
      - economic profit= zero in the long run
      - Q is the only thing consider with firm's decision
    - - many small firms
      - free entry of exit
      - zero economic profit in the long run
      - differentiated product
      - limit flexibility about price control
      - downward sloping demand of produt
      - firm's decision depend on: P\Q\product differentiation
    - - only one firm
      - restricted entry and exit
      - unique product
      - unique product
      - considerable over price
      - downward sloping, more inelastic
      - firm's decision depends on: P\Q
- - - - anchoring and adjustment
        
        This refers to the situation when we try to estimate something, we often begin with a tentative initial estimate, called the anchor, which we then adjust in the light of whatever additional information is available.
        
        A common bias pattern observed in anchoring and adjustment is that the anchors are sometimes of questionable relevance, and the adjustments people make are often insufficient.
      - representativeness
        
        You think that a given shy person is more likely to be a librarian than a sales-person. Is it true in reality?
        
        Suppose this belief is accurate. 90% of the librarians are shy and only 20% of the salespeople are shy.
        
        Is it sufficient to say that a given shy person is more likely to be a librarian than a salesperson?
        
        A decision rule that evaluates that the likelihood of something belonging to a given category tends to increase with the extent to which it shares characteristics with stereotypical members of that category.
      - regression to the mean
        
        If our first measurement of something is far from its average value, a second measurement will tend to be closer to its average value.
        
        Errors often occur when people ignore the regression to the mean phenomenon.
      - availability
        
        We often estimate the frequency of an event by the ease with which we can recall relevant examples from memory. The more easily we can recall examples, the more likely we judge an event to be.
        
        It is justified that it is generally easier to recall examples of things that happen frequently.
        
        However, the problem is that frequency is not the only factor that influences ease of recall, as in our previous example.
- - - - the collector of data
      - variable
      - variable unit of measurement
      - time interval(frequency)
      - trend
      - devitation
    - - what are the causes of the variable X's evolution? why did it happen?
      - what are the consequences of variable X's evolution?what are the other important variables that affect X?
- - - - price reflects the marginal valuation that society puts on that goos(the last buyer's WTP)
      - reflects the opportunity cost of that goods
    - - The value of final goods and services produced in a country in a year
      - Goods consumed but not produced in the country are not included.
  - - - consumption+ investment+government+Net exports(exports-imports)
    - - Wages+ rental rate on capital+firm profit
    - - Final value of all goods and services-intermediate costs