monopolistic competition the competitive model in a more realistic setting
Download
Skip this Video
Download Presentation
Monopolistic Competition: The Competitive Model in a More Realistic Setting

Loading in 2 Seconds...

play fullscreen
1 / 15

Monopolistic Competition: The Competitive Model in a More Realistic Setting - PowerPoint PPT Presentation


  • 448 Views
  • Uploaded on

Monopolistic Competition: The Competitive Model in a More Realistic Setting. Monopolistic Competition: The Competitive Model in a More Realistic Setting.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Monopolistic Competition: The Competitive Model in a More Realistic Setting' - elata


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
monopolistic competition the competitive model in a more realistic setting1
Monopolistic Competition:The Competitive Model in a More Realistic Setting

Monopolistic competition A market structure in which barriers to entry are low, and many firms compete by selling similar, but not identical, products.

demand and marginal revenue for a firm in a monopolistically competitive market
Demand and Marginal Revenue for a Firm in a Monopolistically Competitive Market

1

LEARNING OBJECTIVE

12 - 1

The Downward-Sloping Demand for Caffe Lattès at a Starbucks

The Demand Curve for a Monopolistically Competitive Firm

demand and marginal revenue for a firm in a monopolistically competitive market1
Demand and Marginal Revenue for a Firm in a Monopolistically Competitive Market

Demand and Marginal Revenue at a Starbucks

12 – 1

Marginal Revenue for a Firm with a Downward-Sloping Demand Curve

demand and marginal revenue for a firm in a monopolistically competitive market2
Demand and Marginal Revenue for a Firm in a Monopolistically Competitive Market

12 - 3

The Demand and Marginal Revenue Curves for a Monopolistically Competitive Firm

Marginal Revenue for a Firm with a Downward-Sloping Demand Curve

how a monopolistically competitive firm maximizes profits in the short run
How a Monopolistically Competitive Firm Maximizes Profits in the Short Run

2

LEARNING OBJECTIVE

12 - 4

Maximizing Profit in a Monopolistically Competitive Market

what happens to profits in the long run
What Happens to Profits in the Long Run?

3

LEARNING OBJECTIVE

12 - 5

How Entry of New Firms Eliminates Profits

How Does Entry of New Firms Affect the Profits of Existing Firms?

Don’t Confuse Zero Economic Profit with Zero Accounting Profit

what happens to profits in the long run1
What Happens to Profits in the Long Run?

The Short Run and the Long Run For a Monopolistically Competitive Firm

12 – 2

How Does Entry of New Firms Affect the Profits of Existing Firms?

slide9

12 - 2

3

LEARNING OBJECTIVE

  • The Short Run and the Long Run for the Macintosh
what happens to profits in the long run2
What Happens to Profits in the Long Run?

Is Zero Economic Profit Inevitable in the Long Run?

  • A firm’s profits will be eliminated in the long run only if the firm stands still and fails to find new ways of differentiating its product or fails to find new ways of lowering the cost of producing its product.
comparing perfect competition and monopolistic competition
Comparing Perfect Competition and Monopolistic Competition

4

LEARNING OBJECTIVE

Comparing Long-Run Equilibrium under Perfect Competition and Monopolistic Competition

12 - 6

comparing perfect competition and monopolistic competition1
Comparing Perfect Competitionand Monopolistic Competition

Excess Capacity under Monopolistic Competition

  • The profit-maximizing level of output for a monopolistically competitive firm comes at a level of output where price is greater than marginal cost and the firm is not at the minimum point of its average total cost curve.

How Consumers Benefit from Monopolistic Competition

Consumers benefit from being able to purchase a product that is differentiated and more closely suited to their tastes.

how marketing differentiates products
How Marketing Differentiates Products

5

LEARNING OBJECTIVE

Marketing All the activities necessary for a firm to sell a product to a consumer.

Brand Management

Brand Management The actions of a firm intended to maintain the differentiation of a product over time.

what makes a firm successful
What Makes a Firm Successful?

6

LEARNING OBJECTIVE

12 - 7

What Makes a Firm Successful?

slide15
Brand management
  • Marketing
  • Monopolistic Competition
ad