Please enable JavaScript.
Coggle requires JavaScript to display documents.
1.0. The firm and Market strutures - Coggle Diagram
1.0. The firm and Market strutures
Interpret total, average, marginal, fixed and variable cost
Margin
Marginal cost (MC)
Average fixed cost (AFC)
Average variable cost (AVC)
Average total cost (ATC)
Cost
Total variable cost (TVC)
Total fixed cost (TFC)
Quasi-fixed cost
Total cost (TC)
Total, Average, marginal Revenue
Total Revenue (TR)
Average revenue (AR)
Marginal revenue (MR)
Slope of MR function = 2 x Slope of Demand curve (Q = f(P))
Perfect and Imperfect Competition
Perfect competition
No pricing power for firm
perfectly elastic: E = infinite
MR = P = AR
TR increase when Q increase
Imperfect competition
Firm has at least some control over price
E < 0
MR < P = AR
TR maximum at E = -1 or MR = 0
Shutdown and Breakeven under perfect competition
Coi vở đi = trang 5
Economic of Scale
Vở too nhen
Economic:
Tăng output
Specialization
more efficient equipment, adapt the latest in technology
Reducing waste and lowering costs
Better use of market infor
Discounted prices on resources when buying in larger quantities
Diseconomic:
Tăng out < Tăng input
Cannot be properly managed
Overlapping and duplicating business functions and product lines
Experiencing higher resource prices because of supply constraints when buying inputs in large quantities
Monopolistic competition
Large number of independent seller
Differentiated products
Nature of competition
Entry
Demand
Supply
Oligopoly market
Small number of independt sellers
Differetiated products
Nature of competition
Entry: high
Demand
Kinded demand curve
Cournot model
Nash equilibrium
Stackelberg and Dominant firm
Suplly
Monopoly
A single seller represents the market
Differentiated products
Nature of competition
Entry: very high
Demand
Supply
Thị trường
duy nhất
có
economic profit trong long-run
A firm's supply Function
chỉ có Perfect competion là firm có supply function thui
Pricing stratefy under each market structure
Perfect competition:
Profit maximized: MR = MC
P = MR = MC
Monopolistic competition
Profits maximize: MR = MC
P > MR, MC
+Oligopoly
The o[timal pricing stratefy depends on ous assumptions about the reactions of other firms to each firm's actions
Monopoly:
Profits maximize: MR = MC
P > MR, MC
Conentration measure
N-firm concentration ratio
Herfidahl - Hirschman Index (HHI)