Perfect Competition 完全竞争市场

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1、LECTURE9–StructureofMarketsPriceandOutputDeterminationunderPerfectCompetitionParkinandBade;MicroEconomics;(FirstEdition,2016)Ch14McTaggart,FindlayandParkin(SeventhEdition,2013)Ch13McTaggart,FindlayandParkin(SixthEdition,2010)Ch14McTaggart,FindlayandParkin(FifthEdition,2007

2、)Ch10McTaggart,FindlayandParkin(FourthEdition,2003)-Ch111LectureOutlineAfterwefinishstudyingthislecture,weshouldbeabletoanswerthefollowingquestions:nWhatarethedifferenttypesofmarketstructures?nWhatarethemaincharacteristicsofaperfectlycompetitivemarket?nHowtocalculatetherev

3、enueforaperfectlycompetitivefirm.nHowtocalculatetheprofitmaximisingoutputandpriceforaperfectlycompetitivefirm.nHowtoderivetheperfectlycompetitivefirm'ssupplycurveandthemarketsupplycurvenWhyinthelong-runperfectlycompetitivefirmscanonlyearnzeroeconomicprofitprofits?2Introduc

4、tionnWeknow,thattheaimofeveryfirmistomaximizeprofitsandProfit=TotalRevenue(TR)-TotalCost(TC):-asdefinedineconomics).nWearenowgoingtolookinmoredetailatfactorsthatdeterminepriceandoutputoffirmsinperfectcompetitionandinothertypesofmarketsuchasmonopoly,oligopolyandmonopolistic

5、competition.3Firm’sObjectivesIngeneral,therearethreebroadclassesoffactorthatinfluencefirm’sdecision-making:n1.Mattersinternaltothefirm.n2.Economywidefactors.n3.Factorscommontoorspecifictotheindustryinwhichthefirmoperates-thatis,industrywidefactors.nThesefactorsarecalled“ma

6、rketstructure.”nMarketstructurerefersto“thoserelativelystablefeaturesofthemarketenvironmentthatdeterminethedegreeofrivalryorcompetitionbetweenthefirmsintheindustry.”4FeaturesofmarketstructureSomeofthefeaturesofmarketstructureare:n1.Numberoffirms.n2.Natureoftheproduct.n3.He

7、ightofbarrierstoentry.n4.Extentofinformationavailabletobuyersandsellers.Wewillstudytwotypesofmarketstructures:-nPerfectCompetition/PerfectlyCompetitiveMarketStructurenImperfectCompetition/ImperfectlyCompetitiveMarketStructure5TypesofMarketStructurenImperfectCompetition,whi

8、chincludes:nMonopolynOligopolynMonopolisticCompetitionnMonopolyisamarketforagoodorservice