Homework Answers
|
Perfect Competition |
Monopoly |
Monopolistic Competition |
Oligopoly | |
| Number of firms | Many firms | Single firm |
Large number of firms |
Few firms |
|
Product differentiation |
Homogenous products |
Unique product |
Differentiated products |
Homogenous or differentiated products |
|
Market power / control over price |
Price taker | Price maker | Price makers |
Complete control over price |
|
Ability of firms to enter / exit |
Free entry and exit |
High barriers to entry and exit |
Free entry and exit |
Barriers to entry and exit |
|
Firm demand & Marginal Revenue |
MR = MC MR is the slope of revenue curve. |
MR = MC Demand curve of the firm will shift that it is tangent to the Average total cost curve. |
MR = MC Firm's demand curve is downward sloping. |
Marginal revenue depends on price and the revenue curve is kinked. |
|
Long-run profits? ( Y / N) |
Yes | Yes | No; only normal profits | Yes |
|
Efficient? (Y / N) |
No | No | No | No |
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