hnd mm 微观宏观经济

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1、ASSESSMENTMicroandMacroTheoryandApplicationOutcome1Name:LetoClass:HRIntroduction.IntroductionEssaybasicallytellsthemarketstructureandtheircharacteristics.Indiagramsclearlydemonstratessomemarketstructuretrend.Thenintroducessomereplaceablemarketingtheory.Finally,introducestheTCMCandAC.Ano

2、ligopolyisamarketforminwhichamarketorindustryisdominatedbyasmallnumberofsellersandfewbarrierstonewcompetitorsduetohighstart-upcostsTherearefewsellers,eacholigopolistislikelytobeawareoftheactionsoftheothers.Barrierstoentryarehigh.Themostimportantbarriersareeconomiesofscale,patents,access

3、toexpensiveandcomplextechnology,andstrategicactionsbyincumbentfirmsdesignedtodiscourageordestroynascentfirms.BecauseinEpoint,PmultipliedbyQQcancometomaximumprofit。Fromthispicturewecanknow, demandisrelativelyelasticbecauseallotherfirms'pricesremainunchanged.Belowthekink,demandisrelativel

4、yinelasticbecauseallotherfirmswillintroduceasimilarpricecut,eventuallyleadingtoa pricewar.Therefore,thebestoptionfortheoligopolististoproduceatpoint E whichistheequilibriumpointandthekinkpoint.AnothermarketstructureisMonopoly,itderivetheirmarketpowerfrombarrierstoentry-circumstancesthat

5、preventorgreatlyimpedeapotentialcompetitor'sentryintothemarketorabilitytocompeteinthemarket.Therearethreemajortypesofbarrierstoentry;economic,legalanddeliberate.Anothermarketstructureismonopoly.Economicbarriers:Economicbarriersincludeeconomiesofscale,capitalrequirements,costadvantagesan

6、dtechnologicalsuperiority.Economiesofscale:Monopoliesarecharacterisedbydecliningcostsoverarelativelylargerangeofproduction.Decliningcostscoupledwithlargestartupcostsgivemonopoliesanadvantageoverwouldbecompetitors.Monopoliesareofteninapositiontocutpricesbelowanewentrant'soperatingcostsan

7、ddrivethemoutoftheindustry.Furtherthesizeoftheindustryrelativetotheminimumefficientscalemaylimitthenumberoffirmsthatcaneffectivelycompetewithintheindustry.MonopolyTheprofit-maximisingoutputcanbesoldatpriceP1abovetheaveragecostACatoutputQ1.Thefirmismakingabnormal"monopoly"profit