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Perfect Competition

Perfect Competition. Monopolistic Competition. No Similarities. Oligopoly. Monopoly. Identical Products No advantage D=MR=AR=P Both efficiencies Price-Taker 1000s. Avocados T.J. Hammocks. Perfect Competition. Monopolistic Competition. Retail Stores. Excess Advertising

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Perfect Competition

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  1. Perfect Competition Monopolistic Competition No Similarities Oligopoly Monopoly

  2. Identical Products • No advantage • D=MR=AR=P • Both efficiencies • Price-Taker • 1000s Avocados T.J. Hammocks Perfect Competition Monopolistic Competition Retail Stores • Excess Advertising • Differentiated Products • Excess Capacity • More Elastic Demand than Monopoly • 100s • Low barriers to entry • No Long-Run Profit • Price = ATC • MR = MC • Shut-Down Point • Cost Curves • Motivation for Profit • Price Maker (D>MR) • Some Non-Price Competition • Inefficient No Similarities • Collusion • Strategic Pricing (Interdependence) • Game Theory • 10 or less • Price Maker (D>MR) • High Barriers • Ability to Make LR Profit • Inefficient • Unique Good • Price Discrimination • 1 Cars Appliances Local Utilities Oligopoly Monopoly

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