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PC price taker or maker
$ taker
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PC product is
Homogeneous
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PC elastic or inelastic
Perfectly elastic
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PC prevalence, how common is it and where do u see it
Rare : agriculture and stocks
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PC barriers to entry
None
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PC do they know rivals
No
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PC what kind of advertising
Industry advertising except chikita bananas and cuties
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PC how do they compete
On price which is given
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PC in the short run how do they choose output and what can they earn
MR=MC and can earn a profit or loss or zero e-profit
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PC in the long run how do they choose output and what do they earn
MR=MC can earn zero e-profit
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PC do we like it? Whyyyy
Yes, P=MC and zero markup and max total surplus
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MC how much control over price
Some control, competitive price searcher
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MC product is
Slightly differentiated
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MC elastic or inelastic
Slightly inelastic
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MC prevalence
Many industries, a lot out there
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MC barriers to entry
Slight but none in long run
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MC do they know rivals
No
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MC how do they advertise
Positive adverrising, not negatively against each other
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MC how do they compete
On price and quality and location
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MC in the short run output is at__ and earni
MR=MC earn a profit or loss or zero e-profit
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MC in the long run output is at __ and they earn
MR=MC and earn zero e-profit
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MC do we like it
Its up to you, get mkt power, P>MC, total surplus is down and u get DWL
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O how much price control
More control, contestible market
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O how many firms
Few firms
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O product is
Differentiated and homogeneous like oil
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O elastic or inelastic
More inelastic
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O prevalence
Many industries
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O barriers to entry
Higher and large
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O do they know rivals
Yes
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O what kind of advertising
Positive and negative
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O what do they compete on
Price and differentiation
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O in the short run max output chosen at__ and earn
MR=MC and earn a profit
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O in the long run max output is chosen at ____ and earn
MR=MC and earn a profit
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O do we like it? Whyyyy
Its up to you, P>MC, DWL, dont like collusion
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M price maker or taker
$ maker
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M elastic or inelastic
More inelastic
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M barriers to entry
Very high and its legal
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M what kind of advertising
Positive and they are the industry
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M what do they compete on
They dont
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M in the short run how do they choose output and earn what
MR=MC earn profit and zero e-profit
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M in the long run max output is chosen at __ and earn
MR=MC earn Profit
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M do we like them
No, theres DWL but we like natural monopolies, something about first degree price discrimination
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