Chapter 7 petition 不完全竞争.doc

Chapter 7 petition 不完全竞争
petition
不完全竞争
Chapter 7
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
11>. petition
Assumptions of petition
large number of firms
interdependence
freedom of entry
product differentiation (The key difference between perfect and petition)
examples in Australia
petrol stations, hairdressers, restaurants
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
1. petition
Equilibrium of the firm
short run
Profit maximization is when MC=MR
Amount of profit depends strength and elasticity of demand
More elastic = Less profit
Less elastic = More profit
More product differentiation = Less elastic = More profit
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
$
Q
0
Qs
AR (D)
MC
AC
MR
Ps
ACs
Short-run Equilibrium of the Firm Under petition
Economic Profit
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
1. petition
Equilibrium of the firm
short run
long run
New firms will enter the industry
Established firms will lose market share / customers
Demand curve for established firm will shift to left
Eventually, AR curve will meet LRAC curve and that’s where only normal profits remain
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia
ARL (DL)
MRL
Q
0
QL
PL
LRAC
LRMC
Long-run Equilibrium of the Firm Under petition
$
John Sloman, Keith Norris: Principles of Economic