asdfs

1. Bellringer, graph news story on your slates
You are given revenue, sketch: MC, ATC, D, MR,
different than modern films because it’s a re-release
Universal Pictures
has a
technological
monopoly on this
film because of
copyright.

3. Discussion with your partner
1. Why would it be bad if you were
a firm in a perfect competition
market?
2. Why do consumers like perfect
competition market?
3. Under what condition should a
firm shut down rather than exit
the market?
Please bring your book tomorrow

4. Economic Competition
• 5 basic market types:
– Perfect Competition
– Monopolistic Competition
– Oligopoly
– Monopoly
– Monopsony
• Measures price/nonprice competition, and product
differentiation

5. You sell….
• Your boss gives
you $100,000 to
develop a plan
gain some pricing
power. What will
you suggest the
company spend
money on?

6. You sell….
• New type of pencil and
patent
• New colors
• New erasers
• Advertise
• Support gov’t regulation to
keep competition out
• Sign exclusive deal with
Office Max, TUSD, College
Board, etc

7. Monopolistic Competition Market
• Features:
• Many firms
• Different or perceived different
products (brand names too)
• Some pricing power
“price makers”
• Can be easy to start new firm
• Can be easy to close down
firm
• Not fully informed consumers
Other Examples?

8. Perfect
Competition
Monopolistic
Competition
Oligopoly Monopoly

9. On your white boards: What type of
market?
• Blank DVD’s

10. What type of market?
• Mexican Food

11. What type of market?

12. What type of market?

13. What type of market?

14. What type of market?
• Hair cut

15. What type of market?

16. What type of market?
• Blank DVD’s

17. What type of market?
• Electric Power

18. What type of market?
• Notebook paper

19. What type of market?
• Hotels

20. Perfect Competition graph

21. Monopolistic Competition graph

22. Monopolistic Competition graph

23. Monopolistic Competition graph

24. LR Monopolistic Competition graph
• DWL

27. Please bring your book tomorrow