MindMap Gallery Market Structure and Pricing
This is a mind map talking about market structure and pricing.
Edited at 2020-09-28 07:38:47Halloween has many faces. The theme you envision should influence how you decorate the party space. Jack-o'-lanterns and friendly ghosts are more lighthearted Halloween characters. Zombies, witches, and vampires are much darker. If you want to celebrate all the fun sides of Halloween, then it’s okay to mesh the cute with the frightening. Here is a mind map which lists down the 39 Cutest Couples Halloween Costumes of 2021.
Halloween simply wouldn't be Halloween without the movies that go along with it. There's nothing like a movie night filled with all the greatest chainsaw-wielding, spell-binding, hair-raising flicks to get you in the spooky season spirit. So, break out the stash of extra candy, turn off all the lights, lock every last door, and settle in for the best of the best Halloween movies. Here are the 35 Halloween movies listed on the mind map based on the year of release.
This mind map contains lots of interesting Halloween trivia, great tips for costumes and parties (including food, music, and drinks) and much more. It talks about the perfect Halloween night. Each step has been broken down into smaller steps to understand and plan better. Anybody can understand this Halloween mind map just by looking at it. It gives us full story of what is planned and how it is executed.
Halloween has many faces. The theme you envision should influence how you decorate the party space. Jack-o'-lanterns and friendly ghosts are more lighthearted Halloween characters. Zombies, witches, and vampires are much darker. If you want to celebrate all the fun sides of Halloween, then it’s okay to mesh the cute with the frightening. Here is a mind map which lists down the 39 Cutest Couples Halloween Costumes of 2021.
Halloween simply wouldn't be Halloween without the movies that go along with it. There's nothing like a movie night filled with all the greatest chainsaw-wielding, spell-binding, hair-raising flicks to get you in the spooky season spirit. So, break out the stash of extra candy, turn off all the lights, lock every last door, and settle in for the best of the best Halloween movies. Here are the 35 Halloween movies listed on the mind map based on the year of release.
This mind map contains lots of interesting Halloween trivia, great tips for costumes and parties (including food, music, and drinks) and much more. It talks about the perfect Halloween night. Each step has been broken down into smaller steps to understand and plan better. Anybody can understand this Halloween mind map just by looking at it. It gives us full story of what is planned and how it is executed.
Market Structure & Pricing
Perfect competition
- Introduction
- market structure refers to theimportant features of the market
- # firms
- ease of entry & exit
- forms of competition
- perfect competitionmarket struture
- characteristics
- many buyers & sellers
- sell a commodity product
- buyers & sellers fully informed about price & availability
- easy to enter & exit market
- commodity
- a standardized product that doesnot differ across producers
- bushel of wheat
- ounce of gold
- demand under perfect competition
- Short-run Profit Maximization
- Profit = total revenue - total cost
- Golden rule of profit maximization
- produce where MR = MC
- economic profit in short-run
- average revenue =
- total revenue divided by quantity
- equals market price
- market price = MR = AR
- Minimizing Short-run Losses
- fixed cost & minimizing losses
- fixed cost is a sunk cost whether firm produces or shuts down
- if TR > VC - should produce
- marginal revenue = marginal cost
- produce as long as price > AVC
- shutting down in the short-run
- shut down when AVC > price at all levels of output
- Firm & Industry Supply Curves
- Firm's SR supply curve
- shows how much a firm supplies at each price
- Industry SR supply curve
- At prices < p, no output supplied
- Firm supply & equilibrium
- Long-run
- Zero economic profit
- Long-run Industry Supply Curve
- constant cost industries
- LR industry supply curve is horizontal
- increasing cost industries
- LR industry supply curve slopes upward
- Efficiency
- Productive efficiency
- situation where production uses theleast-cost combination of inputs
- minimum point on LRAC curve
- Allocative efficiency
- occurs when firms produce theoutput consumers value most.
- output where MR=MC
- What"s so perfect?
- Producer surplus
- in short-run = TR - VC
- Social Welfare
- overall well-being of people in an economy
- maximized when MC = Marginal benefit toconsumers
Monopolistic competition
- Structure with many firms selling products that are
- substitutes but different enough that each firm's demand curve slopes downward
- firm entry is relatively easy
- Product differentiation
- Physical differences
- Location
- Services
- Product image
- Short-run Profit Maximization or Loss Minimization
- MR = MC
- No supply curve
- As long as P > AVC, keep producing
- If P < AVC, shut down
- Zero Economic Profit in the Long-run
- happens because market entry is easy
- Monopolistic Competition vs Perfect Competition
- In long-run both earn zero economic profit
- Monopolistic Comp charges more & makes less than Pure Comp
- Monopolistic comp spend more to differentiate their products
Oligopoly
- A market structure characterized by so fewfirms that each behaves interdependently
- interdependent refers to no onebuyer has control over price
- Varieties
- Undifferentiated
- sell a commodity
- product does not differ across suppliers
- steel
- oil
- Differentiated
- sells products that differ across suppliers
- CR-V vs. Rav-4
- Economies of Scale
- most important barrier to entry
- cars sold between prices a &amp; b will be at a loss
- High cost of Entry
- Crowding out the competition
- 3 Approaches
- Collusion & Cartels
- Cartel
- a group of firms that agree to coordinate pricing & production to reap monopoly profit
- Collusion
- an agreement among firms to increase profit by
- dividing the market
- fixing the price
- To maximize profit
- output must be allocated so that the MC for the final unit produced by each firm is identical
- # firms in the cartel
- more firms make it harder to come to agreement
- New entry
- can't prevent new entry or force new entrants to join
- Cheating
- by pricing just below agreed price, a member can increase sales & profits
- Price Leadership
- Price leader
- firm whose price is matched by other firms
- an informal form of collusion
- initiates any market price changes
- Game Theory
- analyzes ogopolistic behavior as a
- series of strategic moves and
- countermoves by rival firms
- Oligopoly vs Perfect Competition(PC)
- Price is usually higher under Oligopoly
- higher profits under oligopoly
- If firms collude
- lower output than PC
- higher price than PC
Monopoly
- Barriers to Entry
- Legal restrictions
- Patent
- grants the holder the exclusiveright to sell a product for 20 years
- License & other entry restrictions
- Federal
- radio & tv signals
- State
- medical care
- hair cuts
- Market power
- power to charge prices > competitive levelwithout losing all customers
- Economies of scale
- illustrated by downward sloping LRAC
- Natural monopoly
- emerges from economies of scale
- Control of essential resources
- when a company has control over some resource critical to production
- Examples
- Alcoa & aluminum industry
- De Beers & diamond industry
- Revenue for a Monopolist
- Monopolist demand = Market demand
- Demand, average revenue, marginal revenue
- demand = average revenue
- average revenue
- = TR / quantity
- marginal revenue
- change in TR from selling 1 more unit
- The gain & loss from selling 1 more unit
- Revenue curves
- Costs &amp; Profit Maximization
- Price maker
- firm which has the ability to set prices
- Profit maximization
- 2 ways:
- TR - TC
- MR = MC
- golden rule of profit maximization
- Graphically:
- Short-run losses & Shut-down decision
- If Price > AVC - produce
- If Price > AVC - shut-down
- Long-run profit maximization
- happens if monopoly is protected fromcompetition by high barriers that block new entry
- Monopoly & the Allocation of Resources
- Price & Output - Perfect Competition
- where Supply = Demand
- Price & Output - Monopoly
- Price
- where output level intersects the demand curve
- Output
- where MR = MC
- Allocative & distributive effects
- allocative efficiency
- Monopoly inefficient because ofhigher prices & lower output
- Deadweight loss
- net loss to society when a firm with marketpower restricts output & increases price
- Price Discrimination
- increasing profit by charging different groupsof consumers different prices for same product
- conditions for discrimination
- demand curve slopes downward
- 2 criteria:
- 2 or more groups of consumers
- each group with different Ed
- firm must be able to charge each groupdifferent price for same good
- at little cost
- firm must be able to prevent those buying atlower price from re-selling.
- examples of price discrimination
- Airline tickets
- discount if buy well in advance
- Printers
- pages minute
- iPads
- gigabytes of memory