Monopolistic Competition: Characterized By A Very Large Number Of Sellers
Submitted By dsoler820
Words: 1389
Pages: 6
Chapter 13:
Monopolistic Competition: characterized by (1) a relatively large number of sellers (2) differentiated products (often by heavy advertising) (3) easy entry to and exit from the industry
Product Differentiation: a strategy in which one firm’s product is distinguished from competing products by means of its design
Nonprice Competition : competition based on distinguished one’s product by means of advertising the distinguished product to consumers
Four-firm concentration ratio: the percentage of total industry sales accounted for by the top four firms in an industry
Herfindahl index: measure of the concentration and competitiveness of an industry; calculated as the same of the squared percentage market shares of the individual firms of the industry
Excess capacity: plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average cost
Oligopoly: the market condition that exists when there are a few sellers, as a result of which they greatly influence price and other market factors
Homogeneous oligopoly: an oligopoly in which firms produce a standardized product
Differentiated oligopoly: an oligopoly in which firms produce a differentiated product
Strategic behavior: self-interested economic actions that take into account the expected reactions of others
Mutual interdependence: a situation in which a change in price strategy by one firm will affect the sales and profits of another firm. Any firm that makes change expects its rivals to react to the change
Interindustry competition: the competition for sales between the products of one industry and the products of another industry Import competition: the competition that domestic firms encounter from the products and the services of foreign producers
Game theory: study of how people behave in strategic
Collusion: a situation in which firms act together and in agreement to fix prices, divide a market, or otherwise restrict competition
Kinked-demand curve: a demand curve that has a flatter slope above the current price than below the current price
Price war: successive, competitive and continued decreases in which the prices charged by the firms in an oligopolistic industry the war ends when the price decrease ceases
Cartel: a formal agreement among firms (or countries) in an industry to set the price of a product and establish the outputs of the individual firms (or countries) or to divide the market for the product geographically
Price leadership: an informal method that firms in an oligopoly may employ to set the price of their product: one firm (leader) is the first to announce a change in price; and the other firms (followers) soon announce identical or similar changes
Chapter 14:
Derived Demand: Demand for a resource that depends on the demand for the products it helps to produce
Marginal Product (MP): the additional output produced when 1 additional unit of resource is employed (the quantity of all other resources employed remaining constant); equal to the change in the total product divided by the change in the quantity of a resource employed.
Marginal Revenue Product (MRP): the change in a firm’s total revenue when it employs 1 additional unit of resource (the quantity of all other resources employed remaining constant); equal to the change in total revenue divided by the change in the quantity of the resource employed
Marginal Resource Cost (MRC): the amount by which the total cost of employing a resource increases when a firm employs 1 additional unit of the resource (the quantity of all other resources employed remained constant); equal to the change in the total cost of the resource divided by the change in the quantity of the resource employed
MRP=MRC Rule: the principle that to maximize its profit (or to minimize losses), a firm should employ the quantity of a resource at which MRP=MRC, the latter being the wage rate in the purely competitive labor market
Substitution
Related Documents: Monopolistic Competition: Characterized By A Very Large Number Of Sellers
1. Economic Systems - A group or organize that want to attribute economic and allocate of resource for production and exchange of goods and services in the community or social club Example: Canadian people get benefit from the good resource also the economic system booms. (http://en.wikipedia.org/wiki/Economic_system) (http://www.slideshare.net/Geckos/the-four-types-of-economic-systems-presentation) 2. Free Market -A marketplace where prices of commodities and services are traded freely between consumers…
Nicos Rivera 2/10/15 Chapter 26 Notes/Vocab Vocab Fort Laramie Treaty – A way that the federal government tried to appease the Plains Indians in 1851 and at Fort Atkinson in 1853. Little Bighorn – A rare Indian victory in the Plains wars in 1876 when th General Custard 7 cavalry was slaughtered. Homestead Act – In 1862, allowed a settler to acquire as much as 160 acres of land by living on it for 5 years and improving the land. Grange Laws – tried to force public control of private business for the…
replace the League of Nations that had come before it and had failed to prevent WWII. It was formed based on the global recognition that the world could not afford a 3rd World War. It’s mission was to solve international problems of either social, economic, or humanitarian nature. The first conference of the UN was held on April 25, 1945 in San Francisco and was attended by 5o governments and non-government organizations involved in the drafting of the UN Charter. It officially came to exist that October…
Quiz Matching! VOCAB 1) Détente 2) Natural Rights 3) Mercantilism 4) Reconstruction 5) Emancipation 6) Populism 7) Rights of the Accused 8) New Deal 9) Suffrage 12) Industrialization “economic transformation of society by the development of large industries, machine production, factories, and an urban work force” “liberties to which one is entitled as a human being, as distinguished from those that are created by laws of governments” “period…
Exam Review – Geography Grade 9 Chapter 2: MAPS 1) What is a map projection? What types of distortions do these projections create? 2) Describe and identify different types of maps General- Purpose Maps – provides many types of info on a map ex. Road maps& atlas maps Thematic Maps- show info on one particular topic or theme (specific info) Topographic Maps- use symbols to show features (examine the characteristics of a small area) Chapter…
Vocab 8 1. Business organization- the ownership structure of a company or firm. 2. Sole partnership- a business that one person owns. 3. Business license- written permission given by the local government that allows a business to open. 4. Zoning laws- law that does not allow people to operate a business in certain areas. 5. Unlimited personal liability- when the owner of a business is responsible for paying all the money the business owns. 6. Liable- having legal responsibility…
the complete effect of a transaction 2 provides a chronological record of transactions 3 helps to prevent or locate errors as debit and credit amounts for each entry can be compared -Debt Ratio- TOTAL LIABILITES divided by TOTAL ASSETS - TOTAL DEBITS always equal the TOTAL CREDITS -Transactions- initially recorded in chronological order before they are transferred to the ledger accounts. - Objective of Financial Reporting- to provide useful economic information to external users for decision…
from the age range of 0-2 years, 3-5 years, 5-8 years. Main development Growth is a factor in the main development of each childhood stage, such as in Infancy, early childhood and pre-school childhoods. It describes a physical change in height size and weight over a life span. In infancy, a baby grows from a completely helpless newborn to a child. They lift their head at 3 months sit unsupported and crawl at 6 months, walk at 16 months , they grow or kick a ball at 2 years. New born babies-…
APHuGe Political Vocab 1. Annexation the formal act of acquiring something (especially territory) by conquest or occupation 2. Boundary, disputes (definitional, locational, operational, allocational) Allocational: dispute over location and resources; Definitional: Conflict over the language of the border agreement in a treaty or boundary contract; Locational: territorial dispute over the edge of two neighboring countries; Operational : boundaries that move according to specific operations or function…